Given that Google’s display efforts are currently an ad network with streamlined access to their inventory (via the Doubleclick AdX exchange), where they work with both buyers and sellers, I’d say that the answer is that ad networks are not going away any time soon. The small undifferentiated ad network will not be meaningful in the future, but neither agencies nor ad networks are disappearing in any large way in the next 2-3 years. After that, we’ll see.
Oct 31, 2010
The answer depends on what the definition of an ad network is. If we’re talking about a business with a wee bit of ad tech and two groups of bag-carrying sales people–one to sell to agencies and the other to sell to publishers–then, yes, we’ll be seeing many fewer of those. On the flip side, I don’t think DSPs solve all the problems by far. I’ll do a post on this at http://blog.simeonov.com
Oct 31, 2010
The current Ad Network model does not have a meaningful future over the next 3-5 years. It no longer makes sense to support an expensive publisher sales team to connect with inventory. With that said, service providers that leverage technology (ex: RTB) to deliver results to advertisers do have a future. With that in mind, ad networks that manage to leverage their existing revenue and customer traction to grow their business in the new ad technology ecosystem will manage to survive and – potentially – thrive.
Jan 18, 2011
In the old sense of the term, no.Those companies that are currently called “Ad Networks” that do survive will likely do so by leveraging unique data sets and inventory expertise to buy across the exchanges.
May 22, 2010
Adam Grenier, 7 years of emerging media and marketing
From a media buying perspective, DSP’s are a great efficiency. Unfortunately efficiency and reach are only a fraction of what goes into deciding where to invest your money. There’s not a DSP out there that can build case studies or come up with ground breaking media executions that break boundaries and actually move the needle when it comes to brand awareness and quality of conversion.
Everyone else is dead on – it will force some networks and sales teams to scale back significanty and focus their efforts. But those that do it well will provide tons of value to those buying the ads, and find new ways to thrive.
Jan 29, 2011
For certain, media is moving towards programmatic buying and selling = efficiency. The ad nets that exist today in an undifferentiated manner and offer little or no value will disappear over the next 2-3 years. We’ll also see, as mentioned above, some ad nets changing models and becoming RTB enabled and start to leverage unique data sets. All of this being said, ad networks with a specific focus, that offer REAL value to advertisers and agencies and focus on specific content or audience segment will have a meaningful future for the foreseeable time period. Think Travel Ad Network etc etc.
Jan 28, 2011