publishers looking to fight ad networks

Posted on December 1, 2009


with rapidly growing online inventory comes a new challenge, selling the inventory and protecting the yield. Cost per Click models dramatically change the value dynamics of online publishing as publishers risk being measured only on performance and not on the brand value the ads bring.

Other publishers are debating a firm anti-demand-side stance, effectively freezing out companies like Publicis’ VivaKi and Havas’ Adnetik. The primary motive for both moves would be to protect pricing and data for premium content websites.

Drama between publishers and ad networks is nothing new, and several high-traffic websites such as ESPN and Weather Channel refuse to work with both networks and exchanges. But it’s demand-side buying — ad network-like models created by agencies — that really has publishers sweating.

Many worry that agencies will buy cheap inventory from publishers, then sell it to clients at a substantial markup. The economic recession has already left publishers with excess inventory, and demand-side buying essentially strips them of pricing power while simultaneously reducing inventory to a commodity.

In south africa, we see an increasing number of advertisers using ad networks to penetrate local publishers with premium publishers blocking ads as they appear