9 thoughts on “The Ad Network Shakeout Has Started”

  1. I think that advertising is the first domain with major losses. Because when you want to cut expenses you don’t cut the production but the promotion.

    So, I think we can see lower rates in online advertising.

  2. Advertising on the internet is all about knowing your audience and knowing how much they are worth (TARGETING). Ad networks have very limited targeting, either just simple Run-of-network or Channel sections. These sections are defined enough and basic CPM ads dont provide rewards for advertisers.

  3. @Steven Finch,

    I couldn’t agree more with you. that is one of the reasons why all these guys are keeling over. it is a lot about hyper-targeting which Google does so well.

  4. I predicted this about two years ago after unsuccessfully pitching a couple of ad networks about self reliance through technological acquisitions over publisher reliance. The overall attitude of ad networks is that it’s way easier to propel growth by acquiring more publishers rather than taking charge and producing via lead generation platforms like the one I was selling. In a way it looks good on them but it’s unfortunate that their overall lack of desire for technological progress has now hurt an entire industry. The problem with the ad network model is that it depends 100% on publishers that will take their traffic somewhere else if they are offered more money or if they are unhappy with treatment. Ad networks also seem to treat their top publishers the least well while simultaneously rewarding low earners. Low earners are not subject to as much scrutiny or late payments and red tape.

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