Online Ad Networks And Economic Downturn

By Janice Michelle Posted on : 7/14/2009 1265

Recent Study Reveals Advertisers Are Still Investing In The Online Ad Networks Despite Economic Downturn

According to a recent survey, the advertisers and interactive agencies are still using and investing in the online ad networks. As per the study almost 90 percent of them want to work with the ad networks in the present year. The rise is around 5 percent compared to past year. More than half of the respondents said they may spend 15% of online budgets after the ad networks.

Joe Apprendi, the Collective Media CEO revealed that in this year's findings the main area of interest is targeting. It is relative to how the agencies and advertisers leverage ad networks. The survey threw some interesting findings. The majority of the advertisers and agencies have developed rapport with fewer trusted ad network partners. More than 70 percent of the respondents surveyed were found to be working with just one or 2 networks.

A large part of the respondents gave their feedback that the number of ad networks has multiplied over the last year. The targeting and inventory quality are the factors that differentiates one from another. The other factors are level of service and site transparency. It does not look like Ad Exchanges would replace Ad Networks in near future. The number of respondents who worked with ad exchanges are still minuscule. Almost 85% respondents did not work with the Ad exchanges. It has been found that 7 percent of them feel exchanges will swap ad networks in future.

Efficiency is still the main parameter for which advertisers and agencies resort to the ad networks. However, no one wants to compromise with ad environment and quality. To facilitate their direct marketing plans and concentrate on the branding activity the respondents feel like working with the ad networks in the long run. However, it needs to be kept in mind that between the years 2007 to 2009 the percentage of agencies using the ad networks for direct marketing plans took a nosedive.

It has been found that User-generated video is still the favourite of the advertisers as far as online content is concerned. More than 60 percent of the respondents preferred blogs while 24% opted for 'Social Media'. But user-generated content as well as social media is getting wider acceptance across the board and all categories are showing signs of improvement over the years.

The capability to successfully target the consumers, quality of inventory as well as service and level of transparency are major factors that go behind a powerful ad network program. This view was expressed by Cramer-Krasselt’s VP and group media director. The market is imbued with a number of ad networks but not all of them can manage to win the favour and trust of the advertisers and agencies. The survey was conducted on almost 500 media decision makers. It was performed between February and March by Sterling Research Group.

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About the author:
Janice Michelle was born in San Diego, 26 October 1972 and currently resides in New York. Janice is working as a co-editor of a leading search engine journal. She has a Masters degree in MBA e-business