Key findings show that inventory quality, targeting abilities and site transparency are most important factors for ad networks’ value proposition
NEW YORK – APRIL 8, 2008 – Collective Media, a leading online advertising network specializing in premium publishers and advertisers, today released the results of its 2nd annual Ad Network Study. The study was designed and executed to better understand the role and value of online advertising networks for both interactive agencies and advertisers while illustrating the change in industry trends from 2007 to 2008.
Key findings from the 2008 Ad Network Study include:
* All Ad Networks Are Not Created Equal. 89.2% of respondents do not believe all ad networks are alike and the leading differentiators are inventory quality, targeting abilities and site transparency; leading one to suppose that even in a crowded marketplace, agencies and advertisers believe that there is room for innovation and differentiation.
* Image and Perception. 96% of study respondents have either maintained or improved their perspective on ad networks since last year’s study.
* Vertical ad networks. Nearly 50% of respondents would be likely/very likely to buy a brand-name vertical ad network vs. a generic vertical ad network. Vertical ad networks backed by recognized, brand-name publishers prove to be even more desirable. 82% of respondents plan to use a vertical ad network in 2008.
* Increase in ad network spending. Agencies and advertisers will spend more on ad networks in 2008 vs. 2007. 75% of respondents will spend 5% or more of their overall online advertising budget on ad networks in 2008. More than 25% of agencies and advertisers will spend 15% or more on ad networks in 2008.
Several findings are in contrast to last year’s results, which cited reach and efficiency as the key reasons to use ad networks as opposed to this year where targeting is the leading motivation. Furthermore, the study validates the vertical ad network trend and underscores the industry’s desire for vertical, branded networks backed by recognized, brand-name publishers.
“We’re excited about the results in this year’s study as it confirms for us a significant trend we have been seeing; that more and more advertisers are turning to ad networks for their branding campaigns,” said Joe Apprendi, CEO of Collective Media. “This along with the stated importance of inventory quality and targeting ability show the growing importance of ad networks in the online media plan.”
“The ad network model continues to evolve under a basic principle; the more information that we have on our audience and the more control and transparency we have of our operational systems will create greater efficiencies for the advertiser”, stated Steven Ustaris, Group Media Director at Carat. “It is good to see that networks that evolve in this manner and listen to what is important to advertisers are positioned to garner a larger a portion of advertising budgets.”
To obtain a copy of the study, visit www.collective-media.com
Approximately 200 completed surveys were received from online media decision makers at both agencies and advertisers in the United States, including marketing vice presidents and online marketing directors from Fortune 1000 brands, and media directors and media planners from leading interactive agencies. Surveys were completed from January 22 through February 18, 2008.
About Collective Media
Collective Media is a leading online advertising network specializing in audience targeting, optimization and reporting solutions to increase relevancy and yield for both publishers and advertisers, reaching more than 150 million unique users monthly. Collective is comprised exclusively of high quality, brand-name publishers offering the largest network of online news sites in addition to a wide selection of sites in every content category. Collective’s innovative approach enables both brand and direct advertisers to achieve superior results through sophisticated audience targeting technology, including contextual, behavioral, geographic and re-targeting. Founded in 2005, Collective Media is headquartered in New York City with offices in Los Angeles, San Francisco, Dallas, Boston, Chicago and Detroit. Visit Collective at www.collective-media.com.