Buying advertising from ad networks versus individual websites: Which is the better approach?
Online advertising networks have been around for a long time, but they've recently seen a resurgence. An increasing number of website owners are selling their inventory through ad networks now, which I think is due to several factors. Targeting on ad networks has gotten better than it used to be, social media has increased the amount of ad inventory (particularly what I'll call "non-premium inventory" because ads on social sites typically have much lower click-through rates and engagement rates), and advertisers are more likely to pursue The Long Tail of their audience.
From an advertiser's perspective, should you be running your ads on a network or should you deal with individual sites for your buy?
First of all let me say it's a complex question that depends a lot on your particular targets, the types of sites in your market, and a number of other factors. But whenever possible, I believe advertisers will get the best value for their advertising dollars by dealing directly with sites that reach their target market, rather than buying inventory from an ad network.
This is true because most site owners know their audience well, and they can make recommendations for how to reach the audience more effectively. Sure, there are lots of site owners who aren't willing to help you, might not want to give you insight into their audience, etc. But I think the majority of online publishers realize it's a win-win-win when they work closely with advertisers. Their audience is better served by seeing ads that are more relevant, the advertisers are happy because they're getting better performance, and the publisher is able to keep its advertisers happy which leads to repeat business.
For example, at IndustryWeek we see both types of advertisers: The ones who truly want to partner with us on a campaign and really care about making their campaign fit the site's audience, and also the advertisers who are buying ad inventory and applying a one-size-fits-all approach. I'm sure you'd expect to see the former group's campaign results outperforming the latter. But I'll bet you'll be shocked when I tell you how dramatic the difference can be -- it's often 10 times better! That's right...if an advertiser does a good job customizing its buy, creative approach, and watching and optimizing the campaign, they can get 1,000 click-throughs on an ad when other advertisers might only be getting 100 clicks. It's all about being relevant to the site's audience.
A lot of media buyers -- whether they're buying for their own company, or working on behalf of an agency for a client -- say that online ad networks are important because of scale. They might say, "We'd need to buy from dozens or even hundreds of individual websites, and it would be so cumbersome that it's much easier to deal with an ad network." This is certainly true, and I'm sure there are lots of advertisers who run into this situation. In many of these cases, ad networks might be the only way to effectively deploy a large-scale ad buy. But before you opt for a network buy, think about that 10x return I mentioned in the paragraph above. If you're able to get ten times the return for maybe two, three, or five times the work, often it makes financial sense to opt for the more custom, more personal relationship directly with websites -- even if it means throwing more resources (time and people) at the campaign.
From an advertiser's perspective, should you be running your ads on a network or should you deal with individual sites for your buy?
First of all let me say it's a complex question that depends a lot on your particular targets, the types of sites in your market, and a number of other factors. But whenever possible, I believe advertisers will get the best value for their advertising dollars by dealing directly with sites that reach their target market, rather than buying inventory from an ad network.
This is true because most site owners know their audience well, and they can make recommendations for how to reach the audience more effectively. Sure, there are lots of site owners who aren't willing to help you, might not want to give you insight into their audience, etc. But I think the majority of online publishers realize it's a win-win-win when they work closely with advertisers. Their audience is better served by seeing ads that are more relevant, the advertisers are happy because they're getting better performance, and the publisher is able to keep its advertisers happy which leads to repeat business.
For example, at IndustryWeek we see both types of advertisers: The ones who truly want to partner with us on a campaign and really care about making their campaign fit the site's audience, and also the advertisers who are buying ad inventory and applying a one-size-fits-all approach. I'm sure you'd expect to see the former group's campaign results outperforming the latter. But I'll bet you'll be shocked when I tell you how dramatic the difference can be -- it's often 10 times better! That's right...if an advertiser does a good job customizing its buy, creative approach, and watching and optimizing the campaign, they can get 1,000 click-throughs on an ad when other advertisers might only be getting 100 clicks. It's all about being relevant to the site's audience.
A lot of media buyers -- whether they're buying for their own company, or working on behalf of an agency for a client -- say that online ad networks are important because of scale. They might say, "We'd need to buy from dozens or even hundreds of individual websites, and it would be so cumbersome that it's much easier to deal with an ad network." This is certainly true, and I'm sure there are lots of advertisers who run into this situation. In many of these cases, ad networks might be the only way to effectively deploy a large-scale ad buy. But before you opt for a network buy, think about that 10x return I mentioned in the paragraph above. If you're able to get ten times the return for maybe two, three, or five times the work, often it makes financial sense to opt for the more custom, more personal relationship directly with websites -- even if it means throwing more resources (time and people) at the campaign.
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