Typically when you think business, you think the bigger something is the better. What you have to realize is the economics of ad networks relies on the value at the tail, which is the value of the small advertisers and publishers. The more small advertisers and publishers there are, the better off a company is as oppose to putting all of their chickens into a few large publishers and advertisers. For vertical ad networks to survive on the internet there are a few things they must do. They must solve unique problems that the big advertising companies cannot. This means finding some form of targeting or some dynamic creative ad that has not been found yet. Just because a company is bigger does not mean they have come up with every brilliant idea. Jared Lansky who has experience working with vertical ad networks says they must be able to reach a fragmented set of publishers without becoming too dependent on larger partners. “It is going to be the collection of the small publishers and advertisers that is going to propel this network”. Vertical ad network must be able to offer a unique reporting of data insight for the advertiser based on a specific category or niche. This is something that the horizontal network cannot do because it is focused on several different categories. “A vertical network can dig deep and find out a lot more information that horizontal networks just cannot find.” Comments Jared Lansky from his NY office. The collection of all of this will allow a vertical ad network to survive just fine. It will allow it to go far beyond just media buying, but towards business intelligence as well. The combination of media buying and business intelligence makes this kind of network a sure winner.
Jul 27