I read an interesting article in the New York Times a couple of days ago, and I want to share it with you. It seems that many large websites are creating their own ad “networks” to sell remnant space on their websites. Instead of the teeth whitening and belly flattening ads you are accustomed to seeing on large websites, you may actually begin to see some better targeted advertising.
The publishers are able to accomplish a few things when starting their own advertising networks. First, they are able to eliminate the middle man from their ad sales. Instead of paying an outside ad network to aggregate advertising, the websites are able to work directly with their advertisers.
Secondly, the publishers are able to offer more targeted (and more relevant) advertisements to their visitors. This should encourage higher click throughs and better conversion rates for advertisers. Again, this will help increase the CPM for publishers who find that advertisers are able to offer more money for their remnant positions.
Finally, publishers can keep all of the valuable consumer and visitor data that is usually taken by the advertising networks. This information is valuable for the publishers, and it prevents third party networks from doing funky things with it.
To me, the most surprising thing is that it seems that these publishers are just starting to do this. I am sure selling advertising across a huge network is a big challenge, but smaller websites (like this blog) have been successfully selling direct ads. I don’t have to generally worry about receiving payments and there’s no middle man to take a big cut.
The NYT article is an interesting read if you have a few moments.