Follow-up: ESPN ad decisions, the blog fallout….

In the wake of the ESPN pr announcement on dropping ad networks form their advertising partners, players on both sides are setting up the camps.

Basically, you have:

-those that run ROI based campaigns and are a slave to technology

-those that favor currying favor to brand marketers with sales efforts

One outspoken person is the action-oriented CEO of Maholo, Jason Calcanis. His grandstanding rant….

http://www.calacanis.com/2008/03/24/are-ad-networks-for-loser-weak-publishers/

…merely takes an “I told you so” stand.

The issue that remains here is that it creates a huge issue with the one metric in publisher yield management: volatility.

Again, the publisher yield metrics are: price, volume, quality, and volatility

The problem with brand marketing, and brand marketing in a world where there would be an explosion of ad sales folks fighting for the same dollars, is a continuous CPM. Lose a brand advertiser and your CPM can drop by as much as $2 to $5.  Lose a direct marketers and that number hovers in the tens of cents.

There is a careful balance to be played here. While Calcanis suggests Google Ad Sense, the drop in pricing would be just as severe. Try planning production resources and scalability with a highly volatile CPM on average to below average volume……oh and I’ll show you a stressed out person.

As a long or mid tail publisher it would be nearly impossible to have your business rely on the fate or one or two brand deals. Continually, these deals would be harder to come by with lower reach and unique numbers unless the publishers banded together.

One opportunity, ironically, may be…that’s right…a remant advertising network that runs brand spots only and runs on a weekly or monthly flight basis. Lot of business developement coordination to making that one happen, but if it works….

Sounds like an opportunity for San Francisco’s AdRoll (www.adroll.com).

Advertisements

No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: