Much Ado About Ad Networks

Thanks to ESPN, we’ve seen a spike in media attention towards online advertising networks this week--for better or worse. The sports behemoth announced Monday that it is cutting ties with its ad networks, and allegedly trying to get other large publishers to do the same. Why? ESPN believes that its premium-branded content offers an audience and advertising experience that’s worth more than what ad networks offer, particularly those selling remnant inventory. The fear is that these networks are devaluing content by offering advertisers an inexpensive way in.

This is our industry’s tipping point, where the market is realizing that audience quality comes first. The advertisers you choose to align with matter. So does relevancy and respecting users’ space. Take the now infamous “Punch the Monkey” banner ads versus General Motor’s innovative “Saturn Aura” campaign. One has become an irritating ad, sitting out there unclicked for the most part and bringing down the industry average. The other has demonstrated how thoughtful targeting and cross-media promotion creates a compelling, integrated and valuable advertising platform.

While remnant ad networks have been an efficient way for publishers to generate quick revenue, essentially reaching an audience at a low price, too many of them are driving down all prices (to ESPN’s point). Remnant players simply don’t have the time, expertise or business model to drive value. That’s not their game. Hence, vertical networks such as Forbes, Jumpstart and, yes, Sportgenic, have emerged as value-added solutions that offer publishers greater reach, more relevant content, increased brand association and an overall better user experience.

The bottom line is that publishers need experts like us. I believe that, by bucking remnant ad networks, ESPN is helping to prove our case.