Traditional media team with niche websites to nab ad dollars
Looking to snare a larger share of Internet ad dollars, traditional media companies are launching "vertical ad networks" in which they sell ad bundles of space on their sites and on independent sites with complementary content.
Forbes.com's Business and Finance Blog Network, announced last week, includes more than 450 finance-focused blogs, such as Talking Biz News and Xconomy. Forbes will sell ad space across that network, earning a cut of the revenue from the sites.
It hopes to attract advertisers by featuring blogs that have been prescreened for "credible" content, says Forbes.com CEO Jim Spanfeller.
Martha Stewart Living Omnimedia has put together an ad network — known as Martha's Circle — that's made up of 25 lifestyle-focused sites such as FriendsEat.com and Christmas-Cookies.com.
Ad space on the partner site typically is sold in packages with space on MarthaStewart.com and MSO's company-owned sites and blogs, which also include The Martha Blog and The Bride's Guide. Advertisers can create their own specialized bundle as well with a la carte site selection.
The rise in vertical ad networks comes as traditional media companies, particularly publishers, try to compete for online ad revenue with giants such as Yahoo and Google. The massive reach of those companies gives them an advantage in luring big chunks of the $20 billion-plus being spent annually on Internet advertising, according to the Interactive Advertising Bureau.
Yahoo's ad network had 157 million unique visitors in February alone, according to ComScore Media Metrix. Google's network had 147 million.
Media companies' niche networks draw just a sliver of that audience. For instance, Martha's Circle had 3.9 million unique visitors in February, according to technology company Adify, which specializes in vertical ad network infrastructure.
In addition to working with MSO, Adify has about 65 other clients, such as Warner Bros., which has a mom-focused vertical ad network; International Data Group (IDG), which has a technology-oriented network; and iVillage, which has both health- and parenting-focused ad networks.
