ESPN has recently announced they are going to stop using ad networks. Concerns are around how ad networks place ads and the value of the brand vs. the return on ad placements. MediaWeek posted a article on the recent event on their site and the article interviews several people close to publishing and ad networks. The various views are interesting but show there is obviously a issue for high value brands. The ad networks, as expected, are saying "you need us". While my impression is ESPN and others are saying "our brand is more valuable than what you are compensating us for it" and "the ads you are displaying along with our content is not valuable/frivolous/does not match".
I personally believe that ad networks are needed for high volume, low value, affordable advertising for specific business models and also for businesses that cannot afford a more integrated campaign and it is obviously critical from a revenue standpoint for publishers/brands/bloggers that are not in the top echelons with the likes of ESPN.
However, I also believe that there is going to be a need in the near future for more one on one matching of those doing the publishing and those that are trying to market their brand and message.
Is there a play for a new breed of company that helps bring together these two needs in more of a customized and targeted way? Or are we going to see more companies investing outside of advertising and investing more into building interactive and social media experiences that they have more control over? Think the Office Max's "Dancing Elves" and Logitech's "Logitech Football Challenge".
Source: http://www.mediaweek.com/mw/news/recent_display.jsp?vnu_content_id=1003728998
-David
Followup: Here is another blogger with a similar view (and much more opinionated about the publisher's needing to dump ad networks: http://www.calacanis.com/2008/03/24/are-ad-networks-for-loser-weak-publishers/
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