Ad Networks are the new Agencies - there's your damn answer

to the question, what's the new agency look like?

Can't count the number of times I've heard in the last 10 minutes that there are tooooo many ad networks out there!  How's a planner to decide which one to use?  They're all schlepping the same MySpace inventory or niche power adapter technology blogs.  In the end, no one ever got fired for putting Yahoo! on the plan.  But, during a conversation yesterday with a friend at GoFish.com, he described their new new new model as a network of sites (read acquired inventory; a little owned, a little borrowed and a little JIT arbitraged) focused on a couple of audience types that develops custom branded experiences and promotions online on behalf of big brands.  They've got designers, strategists, media buyers and sellers and a method to figure out if they are making any money.  I could be off here, but that sounds a lot like an advertising agency of old.

Does anyone say there are too many ad agencies out there?  Not really.  There are thousands of them out battling for the same client dollars.  Agencies come in all sorts of flavors, sizes, shapes and specialties.  Mostly built from scratch with a single client and some cult of personality.

Traditional agencies won't ever get online.  Most ad networks do and will grow by expanding their core of online media understanding with complementary products.

Breaking news . . . there will be more and more ad networks coming!  Some just like to play the market and cut a little slice for themselves.  Some like the custom branded experience creative stuff.  Some lean on great customer service or targeting or reach or audience expertise.

Sorry confused planner, but there is an end-around already in motion.

Comments

[Le'Nise Brothers]

There will indeed be more ad networks coming, but there will be more ad networks failing as well. In the UK, many of the networks sell the same inventory, which has led to untold number of problems with brands appearing on porn/p2p/fighting sites and the IAB cracking down.

I completely agree that as long as new sites keep appearing, there will be a role for networks, but the networks that will come out on top are the networks that identify profitable niches and build from there. AdGent 007 is good example of this.

[Matt Mantey]

Le'Nise - Thanks for coming by. That's the thing, advertising agencies always repped the same media inventory too. They branded themselves on creative or research or insight or whatever. I think there is room for thousands of networks using the same inventory. I agree that a network's ability to control the inventory is part of the special sauce.