March 25, 2008

New Blog Ad-Network Stirs Debate
A new ad network run by Forbes has already got the detractors wondering what the point of ad networks are for bloggers. The key argument seems to be that bloggers aren’t going to really improve their business by selling bad looking ads that people aren’t going to interact too. In an article entitled ‘Ad Networks Are For Losers’ on Silicon Alley Insider, Jason Calacanis says:
I’ve never liked the ad network business. They’re a very short term solution and they are very damaging to high-end publishers because they create massive channel conflicts (i.e. many people selling your inventory confusing advertisers), they run horrible ads that people hate (think punch the monkey), and the space is filled with dishonest players (i.e. they promise to not run certain types of ads… but they do).
Nick Denton stopped running ad networks realizing he was better off having one phone number for people who wanted the Gawker audience. He also made his sites look MUCH better to users by not running Lowermybills , Netflix, Blockbuster, and AdultFriendFinder ads. We were on the verge of doing the same thing when we sold Weblogs, Inc. to AOL, and now ESPN is kicking out the ad networks.
Mike Shields in MediaWeek says that advertisers have taken notice about the effectiveness of ad networks:
Top Web publishers are planning a revolt. Even as more prominent sites experiment with selling remnant inventory through online ad networks, and in some cases ad exchanges, ESPN.com is saying thanks, but no thanks…
“We’re heading down a path where it no longer suits our business needs to work with ad networks,” said Eric Johnson, executive vp, multimedia sales, ESPN Customer Marketing and Sales… ESPN’s decision crystallizes a philosophical debate in the online ad sales industry that has intensified since the Interactive Advertising Bureau’s annual meeting last month when during a keynote address, Martha Stewart Living Omnimedia media president Wenda Harris Millard gave her now famous warning against selling Web inventory like “pork bellies.”
Two sides have formed—those who want to protect traditional, direct selling of premium content brands and the math-loving crowd that favors automation and data. The math lovers make the traditional sellers nervous.
B.L. Ochman says that blog advertising has problems with creative execution and social media know-how:
There’s money in blog advertising, for advertisers and bloggers. But here’s the bottom line: without great creative — which is in very short supply — blog advertising will fail. And without first-hand knowledge of social media influence building — which, sorry to say, mainstream media still doesn’t have — blog advertising will fail no matter who’s selling the ads.
When PSFK left the Federated Media in 2007, we did so because we just felt so under-represented by the company and when sales we made the brands and their creative were so irrelevant. We decided that we could find better ‘beyond the banner’ deals that were a win for our readers, PSFK and the brands. We’re still working in it but we’re pretty sure that classic banner advertising is never going to be a money-maker for us.





2 Responses to “New Blog Ad-Network Stirs Debate”
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March 26th, 2008 at 3:25 am
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April 14th, 2008 at 12:32 am
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