Survey Forecasts Increased Use Of Ad Networks

MediaPost - A NEW SURVEY OF DIGITAL media buyers and planners finds that 66% of advertisers plan to increase their use of online ad networks this year. In addition, 88% of respondents plan to use one--up from 77% in 2006.

The survey of 100 digital media buyers and planners was conducted by Collective Media, an online ad network. The survey found that while the use of ad networks and ad spending is growing, respondents indicated frustration over the number of ad networks and complexity of the marketplace.

For example, some 62% of the media buyers polled said there are currently too many ad networks. That said, only 17% of respondents maintained that all ad networks are pretty much alike.

"The ad network space is a cluttered and competitive arena. We wanted to learn more about it and how the use of ad networks is changing," said Joe Apprendi, CEO, Collective Media. The firm also sought to find out how it might lure more brand marketing dollars to its ad network. Currently, direct marketing budgets are responsible for the majority of revenues to ad networks.

The survey found that 80% of brand marketers are using ad networks for direct marketing purposes, while only 6% are using them for branding purposes. However, 40% are using ad networks for both direct and brand marketing purposes.

"That's a positive," Apprendi noted, adding: "As a result, they're not just measuring the performance on a pure conversion rate, but the interaction rate is becoming more important."

In addition, 20% of survey respondents considered affiliate marketing an alternative to ad networks and 18% considered e-mail an alternative, both tactics typically deployed by direct marketers.

Beyond that, 79% considered portals like AOL, MSN and Yahoo as an alternative to ad networks and 69% considered publishers an alternative.

"We found that ad networks aren't just being pigeonholed on a direct marketing basis alone," Apprendi said.

The survey indicated that 59% of agencies/advertisers limit their use of ad networks due to a perceived lack of editorial control including concerns over the types of ads being used and position, among other factors. In addition, 38% of respondents cited audience duplication caused by publisher overlap among ad networks as a major impediment to using networks.

When trying to determine what criteria makes one ad network different from another, more than 57% of respondents said that how an ad network targets audiences was the No. 1 differentiating factor. The survey found that reach (at 52%) and efficiency (at 66%) remain key drivers for why agencies/advertisers include ad networks in digital media plans.

The survey marks the first of a series of surveys Collective Media has planed to better understand how publishers and advertisers are using ad networks.