Use of "Ad Networks" Surges Six-Fold as Media Companies Step Up Monetization of Unsold Online Advertising Inventory
The IAB and Bain & Company announced the release of a benchmark study which suggests that online publishers are increasingly turning to sales intermediaries known as ad networks to sell off excess inventories. The use of "ad networks" surged from 5% of total ad impressions sold in 2006 to 30% in 2007, according to the newly released "Digital Pricing Benchmarking Study" from Bain, the global business consulting firm, conducted in coordination with the Interactive Advertising Bureau.
As online publishers continue to experience growth rates of 20-30% in ad revenue, the race to create new advertising opportunities has left publishers with an excess of inventory which they are selling through ad networks at up to 90% discounts versus direct sales rates.
