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Vertical Ad Networks Work! Or do they?

By Angela | Tue, Mar 25, 2008 5:30 am

I read a very interesting post from Jason Calacanis (CEO of Mahalo) titled, “Are ad networks for loser/weak publishers?” Go ahead and read the full post, it is well worth the time. Here it is in a nutshell:

Giving away your inventory gives it the appearance of being cheap thus becoming less desirable to marketers.

Ad Networks take too much money.

You CAN sell your own inventory.


Calacanis goes on to use ESPN’s decision to discontinue its ad network as evidence. Well his whole post got me thinking about vertical ad networks, specifically those that target urban or Black publishers. While Calacanis’ statements were on the whole ad network industry in general I think that they also apply to niche and vertical ad networks as well. There are a host of Urban and Black ad networks that have launched within the last year, networks like this should be more in tune with your content right? Wrong. Who’s to say you won’t get a display ad for BlackSingles.com on your site just because that is what XYZ Ad Network sales team closed a sale on. The bottom line is the publisher can only control which ads are displayed by a) Selling ads yourself; b) hiring someone to sell ads for your site privately. Of course there is a monetary value to selling your own ads, you can keep more of the money for your site. What outweighs money and what is far more important is the brand integrity a publisher retains by being able to thoroughly screen advertisers and advertisements. So if ad networks don’t work what does? An ad sales team in the truest sense, a few people intimate with your content who sell to specific advertisers that align with your brand – not in bulk. Overall ad networks are like lawyers when you are their client they SHOULD work FOR you not AGAINST you.

Category: Advertising, News, Strategy, Trends, Web 2.0

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This post was written by:

Angela - who has written 229 posts on Black Web 2.0.

Angela Benton is the Founder and Publisher of BlackWeb20.com. Her experience spans a variety of industries including consultative relationships with companies such as UPS, Bizjournals.com, Realestate.com, and Lendingtree.com.

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  • Good article and great interlinking: read 'em all and agree with your conclusion here.

    Selling ads myself is an option but cuts into other areas of business growth. How and where can we hire out this expertise? Is there a responsive and proactive online agency with experience with the "urban" space - local, national and global - that's ready to step up? If so, it's ironic that they need to make themselves more visible.

    With a growing number of quality websites from our community, the ability to serve up relevant offers to web site visitors is critical.

    Thanks for the great work you're doing here!
    Natasha
  • blackweb20
    Thanks Natasha! You are right this will be a hard balance for smaller publishers. Jason's statements applied mostly to medium sized publishers though I do believe smaller publishers could also benefit from his philosophy. The space is wide open for someone to step in and really give urban publishers what they need and are looking for.
  • Clearly this man doesn't know anything about the internet... It's plain hard to sell ad space on thy own... That's reality as my poetry sites combine get well over 100,000 unique visitors yet still I only get authors, poets contacting me regarding ad space... Believe me valueclick, burstmedia, google adsense, and casalemedia is working for me so I shall not complain... In summary it's not that simple, as as small, medium and large sites alike all are somehow connected to some AD NETWORK...
  • Check this out. Another story of how a niche ad network might be going down: Glam Makes Big Cuts In Publisher Payments - “Up To 80% Drop In Revenue”
  • blackweb20
    Great article. What is going on with Glam is very interesting considering many look to them (now or in the past) as a good example of what a successful vertical ad network is. In general when you start messing with money the publishers receive there will always be some fall back, it also doesn't help that the small publishers get the short end of the stick. What seems to be evident with Glam and what will work in their favor is the brand and loyalty that they have developed. I have never used Glam but am making this assumption based on the comments in the post over at TechCrunch.
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