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Old 09-07-2005, 12:04 PM   #1
Larwee

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Default Advertising demand is increasing

The demand for advertising space is increasing and that should be good news for web publishers.

Networks are having problems getting what they call "cheap inventory" because prices are going up.

There is a growing demand for online advertising and the prices are going up. A number of premium sites have sold all their available space.

This looks like it could possibly be a good time for some people who have tried selling advertising space directly in the past without much success to give it another try due to the demand for advertising space.

The ad networks are in the middle of all of this and some have being hurt. Experts are expecting this to cause some new mergers.

This article provides some very good reading http://www.ecommercetimes.com/story/...-Coaster.xhtml

Last edited by Larwee; 09-07-2005 at 04:12 PM.
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Old 09-07-2005, 12:59 PM   #2
winny
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Larwee,

I personally must say many thanks to you. Many fresh info I found on this forum started by you. Just like this one :-).
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Old 09-07-2005, 01:35 PM   #3
Larwee

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Thanks winny.

I do my best to be helpful in my posts and I am very glad to see that I have been of some help to you.

I have several topic ideas in mind that I haven't gotten around to yet, including several that should be very helpful which have never been covered on Geek/Talk. I hope to eventually start posting some of them.

Getting back to this particular post, being aware of what is covered in that particular article can be helpful to some members in making advertising related decisions.
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Old 09-07-2005, 02:01 PM   #4
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I'd like hear someone from an actual ad network confirm this.

I have quite a few new sites I've launched or bought in the past several months, content often isn't unique, but they're quality sites and comments from networks like Fastclick claim they have no problems with the site, but to check back in another 3 months.

The one particular site I was told to check back in 3-4 months, had been with fastclick previously with the prior owner yet they require you to re-apply under your current account.

Hopefully this is true and good news for publishers to shore up profits, but I still think the networks are just as picky as ever.

Last edited by fusionhosting; 09-07-2005 at 02:02 PM.
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Old 09-07-2005, 03:48 PM   #5
Larwee

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fusionhosting, in the article I linked to in my original Jarvis Coffin, who is the Chief Executive Officer of Burst said that, and Burst is a big and respected network. Jarvis Coffin had several things to say related to all of this.

While AdBrite isn't in the same league as Burst, the CEO and founder of AdBrite also had some things to say in that article which were similar to what the Chief Executive Officer of Burst said.

So someone from an actual network did say this.
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Old 09-07-2005, 03:59 PM   #6
cheezdoodle
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Thanks for the informative article. Looks like good times might be on the horizon for some of us here

My question now is, what would you do to take advantage of this situation? Are there some new adnetworks out there that are offering better CPM's than what we have been used to lately? Will I see my own adnetworks like Tribal Fusion raise their CPM gradualy if this continues?

Which networks are offering the guaranted rates those guys were talking about in the article?

Also, what kind of CPM's are people getting on Burst and that other network in the article right now?
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Old 09-07-2005, 04:30 PM   #7
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I personally think this is mostly hype. True , advertising online is getting bigger, but this is mostly for Google, Yahoo, MSFT, and big online sites. The average site should see some increase, but not overall such as the big guys. When C|NET is pulling over 10 CPM, Johnny's shopping outlet will be closer to .20 +.
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Old 09-07-2005, 04:47 PM   #8
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this is good news.

Quote:
I personally think this is mostly hype. True , advertising online is getting bigger, but this is mostly for Google, Yahoo, MSFT, and big online sites. The average site should see some increase, but not overall such as the big guys. When C|NET is pulling over 10 CPM, Johnny's shopping outlet will be closer to .20 +
ofcourse, the bigger the player more it attracts advertising.

or put it this way, promote your site well = more traffic = more advertisers wanting to advertise on your site.
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Old 09-07-2005, 09:47 PM   #9
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Quote:
Originally posted by Larwee
fusionhosting, in the article I linked to in my original Jarvis Coffin, who is the Chief Executive Officer of Burst said that, and Burst is a big and respected network. Jarvis Coffin had several things to say related to all of this.

While AdBrite isn't in the same league as Burst, the CEO and founder of AdBrite also had some things to say in that article which were similar to what the Chief Executive Officer of Burst said.

So someone from an actual network did say this.
I was asking more for some insight or insider opinion from someone in the industry, as that article just seems poorly focused and as OnlineGuide put it 'hyped' up.

It makes it sound like there's an ad boom for the entire industry where in my opinion, it's only for the major players that have always commanded the largest share of traffic and higher CPM's of the market, not the smaller sites. For them to say they're paying too much, or the inventory is not available... I'd claim otherwise, that it is available and relatively cheap - just look a little lower on the food chain.
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Old 09-09-2005, 04:46 PM   #10
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I believe what they say, but the problem is that these articles mostly apply to the very top tier of sites. When I read about inventory getting scarce and rates going up, it usually only deals with the sites that are very popular with the mainstream audiences and have mostly booked sales.

Ad networks that have "regular" sites and fill them as best they can generally have not seen a huge change. I could see TribvalFusion or other more exclusive networks getting some of the benefits, but as a FastClick customer I have seen zero change, and I'm sure that is the same across many sites and networks.
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Old 09-09-2005, 09:49 PM   #11
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Thanks for the interesting article But I agree with Brad that this article effects the top teir web sites only. Most smaller publushers who work with the RON ad networks are not seeing much if any upside, at least I have not seen a difference. I have actually even noticed a lower CPM so far in September then I did in August.

Hopefully the increase in rates do eventually trickle down to the rest of us. Only time will tell.
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Old 09-10-2005, 04:55 PM   #12
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I was wondering if there is a list of ad agencies ranked by how 'big' they are (eg most customers, highest CPM prices or maybe financial data like profit or turnover) ?
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Old 09-12-2005, 12:14 PM   #13
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Magazines like OMMA, AdWeek, Advertising Age would have this type of information. I have a page torn out from OMMA that lists the top (by volume) Ad Networks and Ad Servers.

For financial data, you would need to either research their financials through reports to the SEC (publicly available online) or from someone else who might have done this. They are not going to publicize their average CPM rates, but profit, number of publishers, ads served, and a few other things are often bragged about and used as marketing tools.

For example, Advertising.com was the top network with 3,000 sites and 25 billion impressions for the month. Tribal Fusion was #3 with 800 sites and 8 billion impressions, and FastClick was 4th, with 7,500 sites and 5 billion impressions. You can review data like this and make conclusions about each network. When I see that Tribal Fusion sites average 10 million impressions each, and FastClick sites average only 650K impressions, I conclude that Tribal Fusion has a much better network. Sites are likely of higher quality, higher popularity, and quite likely earn more money than from other networks.
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Old 09-12-2005, 02:13 PM   #14
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Thanks for the info Brad_Waller. If anyone got some concrete data I would be happy to read it Nice to see that TribalFusion and Fastclick are rather high in the "rankings". Who is second?

Concerning the topic.. I also have the idea that it is getting better, maybe also because we are getting a lot of mails lately of ad networks who are requesting us to sign up.
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Old 09-12-2005, 03:00 PM   #15
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Robinn,

Just call me Brad. MaxOnline was #2. The rankings were:

Advertising.com
MAxOnline
Tribal Fusion
Fastclick
24/7 Real Media
Blue*******
ValueClick Media
ValueAd.com
BURST! Media
TrafficMarketplace

All had more than a billion impressions per month. I looked online, but I was unable to find any content from OMMA Magazine, just the info pages at MediaPost.
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