The volume of advertising sold through online ad networks accounted for 30% of total ad impressions in 2007, compared to 5% in 2006, according to study conducted jointly by Interactive Advertising Bureau and the consulting firm Bain & Co.
Online publishers are experiencing ad revenue growth in the neighborhood 20% to 30%. However, the study found that advertising not sold directly by publishers but instead through ad networks is typically steeply discounted.
It notes that large marketers are continuing to shift a significant portion of advertising budgets to Internet media. From advertisers’ perspective emerging ad networks can drive down CPMs. However, publishers find that they can achieve higher revenues offering advertising for sale through multiple ad networks, according to the study.
The report recommends that publishers and ad networks form stronger partnerships to develop best practices for the digital advertising marketplace.
“Building more effective relationships between publishers and ad networks is critical. In the longer term both parties will benefit from gains in ad network CPMs,” said in a statement Sherrill Mane, senior vice president of industry services at the IAB.
The volume of advertising sold through online ad networks accounted for 30% of total ad impressions in 2007, compared to 5% in 2006, according to study conducted jointly by Interactive Advertising Bureau and the consulting firm Bain & Co.
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