Re: ONLINE-ADS>> Banner Ad Networks

Ray Taylor (taylor_at_bizbiz.com)
Fri, 21 Feb 1997 17:30:29 +0000

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Rob Sudduth <robs_at_atg.com> wrote:

> What about the national advertisers? Don't you think they are going
> to be more compelled to buy from a network than multiple sites?

Yes, the networks may offer advantages to the national advertiser,
but...

> but if GM insists on buying through the network,
> are you going to disregard their business because you have a local
> sales force who can bring home the bacon?

..If you can sell the same slot for a profit, then why sell to GM at a
loss, or low margin? You might take GM business from the Network for the
prestige, and you might want to allocate a proportion of your site slots
as free marketing / PR, but then what print publication would accept
free advertising from GM just because it is GM? Answer: the new, small,
cheap, amateur one and the one that will go out of business in a short
while.

My point was the solution to the problem is to look at the business
case, which will vary according to the site being operated. If the
Network sell brings in sufficient volume to allow for the loss of margin
then go for it. If not, find a cheaper way (or cheaper network).

> It seems to me that large national advertisers are going to insist on
> network buys....unless they set up networks of their own? We've heard more
> than one request for our ad network software from national brands who want
> to serve ads from a central location and bypass the networks all
> together....maybe that's a more preclinical model for everyone. The brands
> have access to the sites they want to advertise on. The sites get close to
> full dollar for the ads and the advertisers get what they want....real time
> access to campaign performance.

Another alternative would be for small publishers to group together to
set up their own network sales operation. Ultimately the business will
evolve around whatever works best.

Ray Taylor <taylor_at_bizbiz.com>

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