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October 29, 2008
Online Advertising Networks Struggle As Industry Growth Slows
Online advertising networks are struggling to make ends meet during a tough economy and a slowdown in industry growth. JellyCloud and Adzilla have shut down while AdBrite had to lay off 40% of its staff.
It's a crowded field with over 300 ad networks, many of them designed to target niche markets. Bigger ad networks, such as AOL's Platform-A, are experiencing struggles in niches such as auto, financial, and telecommunications.
What do you think of this slowdown? What are your experiences with ad networks? Let us know in the comments.
via WSJ
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Posted by Nathania Johnson on October 29, 2008 8:11 AM
Comments
It is why we chose a VaaS model. Too many ad networks all saying the same thing to the publishers - will we share 50/50 with you. What is really happening is more like - we will take 50% of the revenue from your inventory just to place the ad. Certainly there is value in placing the ad, but it is not 50%, 40%, 30%, 20% or even 10%. It is the content owner's / web publisher's inventory and they should get most of the revenue. There will be a market. There will be big winners, but only after the best create real value for those with the inventory.
scott broomfield October 29, 2008 6:47 PM
In 1920 majority of shareholders sold their stake in Ford because they insisted the auto industry had reached its peak. Maybe they were right in light of the events with the Big 3 recently.
Many are saying that Online Advertising has reached its peak already.
Major trends follow the S-curve where it takes 50% of the time to reach 10% of the market and the same amount of time to reach 90%.
With that logic, online advertising is now at 8-9% of all marketing budgets. It would be a strong indicator then in the next 10-12 years it will be 90%.
We are about to witness a major shift and transfer of wealth. Which side will you be on?
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Online Advertising April 18, 2009 11:41 PM
