With consumers spending more time online and advertisers increasing their spending in this arena, it seems logical that ad networks are becoming a major force in allocating the inefficiencies of this marketplace. A recent Bain benchmark survey indicates that ad networks are rapidly gaining market share.
- In 2007, ad networks sold 30% of total display ad space — a substantial increase from the 5% market share they garnered in 2006.
- Another noticeable trend is that ad space inventory more frequently sells out but at a lower price when an intermediary such as an ad network is used. Further, the CPM (cost per thousand views) for an online video ad goes for 2–3 times the rate of a display ad.
- The survey also indicates that online publishing revenue increased 32% in 2007 but online ad network revenue increased 50% in 2007.
Review the entire survey to understand the changing nature of selling online ads and discuss ways to improve marketing strategies with your online publishing clients.[Source: Interactive Advertising Bureau, 8.11.2008 release]