Joining an ad network is one of the
best ways a small site can generate advertising revenues. With no
advertising sales staff, the best recourse for small online operations would
be to outsource the process of selling its ad inventory. This is best
accomplished by the ad networks, which provide the sales force that sells
space on member Websites to advertisers and media companies.
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Like all other creatures, however, ad networks are created differently.
Some, such as leaders DoubleClick and 24/7 Media, are geared towards high
profile and high-traffic sites. Others work on a direct-response model,
while some specialize in niche markets, or alternative advertising venues.
And as with television, radio and print, there are ad networks specializing
in remnant space, or unsold leftovers. Since its inception a few years back,
ad networks have morphed into a variety of formats.
The services offered by ad networks have kept in step with the increasing
sophistication of the Internet and its users. From simply placing banner ads
on sites, ad networks now integrate email campaigns, rich media, and even
demographic profiling. Ad networks are slowly transforming into full-service
agencies.
With the varying advertising services, revenue streams and advertising
formats offered, the choice of an ad network can be daunting for many small
online businesses. Here are twelve factors that you should consider in
selecting the best ad network to participate in:
1. Reputation
and reliability. Like any
other business decision, joining an ad network requires systematic research.
It is important that you carefully investigate the quality of the ad network
before signing the contract. You also need to check the capability of the
network and verify whether it really does have the sales force required to
sell advertising inventory of member sites. There are a number of ad
networks that are nothing more than a person with an HTML editor. Go to a
number of sites that review ad networks, such as ClickQuick.com and
AdBility.com to get a first-hand account of which networks to go to and
which should be avoided.
2. Timeliness
of the payment schedule. The
timeliness of payments is often the source of complaints from participating
sites. Watch out for networks whose payment schedule is quite slow. While 45
days after the end of the month seems to be the norm, there are a few
networks that pay as late as nine months after the end of the campaign.
Choose a network that pays like clockwork.
3. Ad revenues
per traffic. Different
networks offer different CPM, CPC and sponsorship rates. Some networks offer
lower commissions compared to other programs. Determine if the commissions
are commensurate given the traffic levels and demographic targeting. From a
unique visitor standpoint, determine if the ad revenues may offset the
inconvenience of the visitors in viewing the ad frame, pop-up ads or
full-page ads.
4. Flexibility
of ad delivery. The ideal
ad network provides its members with the ability to choose exactly what ads
are going to run on their site, how long each available banner will run, and
even provide the weight to give it within the rotation. Check if the
advertising network offers a variety of basic ads that you can set up to
rotate throughout your web site. It is also important to determine the level
of control the network provides in choosing the campaigns to run on your
site. Look for a network that allows you to choose which ads from their pool
of advertisers to run. Some networks offer tools that give you the ability
to block potential competitors that may be advertising, or block advertisers
that you think are inappropriate for your audience. Some may be running ads
of products you do not want associated with your site (e.g. banner ads for
gambling and casino sites running in your family-oriented site).
5. Percent of
commissions. Ad networks
often get a certain percentage of your ad revenues, depending on the
contract you signed. Assuming for example that you agreed to a 50 percent
commission, you will only be getting half of the revenue gained from the
25,000 impressions served on a $0.50 CPM banner, or net earnings of $6.25.
6. Ability to
sell out ad inventory. Be
aware that many ad networks are often unable to completely sell out their
inventory. Their ad sales seem to be cyclical with web sites reporting that
inventory sold can be as low as 50% and as high as 100%, depending on the
season and current ad market. To fill up your unsold space with ads, some
networks serve a blank banner (which of course pays nothing) in your ad
tags, a banner advertising the network itself (no fee as well) to a variety
of affiliate program banners (which pay on a per sale or per lead basis).
Basically, some ad network participants are stuck with whatever banners get
inserted into their pages.
7. Quality of
ad campaigns. Whether you
like it or not, the kind of advertisers presented on your site speaks
volumes on the quality of your site. Avoid networks that offer mostly
"remainder" campaigns with relatively low CPM rates,
"pay-per-click," or "pay-per-sale" deals.
8. Placement of
banners. Most networks
require that their banners be placed within the first 250 pixels of a site
where visitors can see the banner without the need for scrolling. Look for
the network's conditions for exclusivity of ad banner in page, and whether
you can use other banners within the page. There are some ad networks that
require placement of their banners on the choicest spot in the first page of
your site.
9. Form of
banners and advertising materials served. The
480x60 banner is the commonly used banner served by ad networks. Some,
however, allows the use of buttons and other banner sizes. Still, there are
networks that serve full-page ads (which usually have higher CPMs), pop-up
ads and even text ads. Other networks require that you place a search box in
the first page of your site in addition to a 480x60 banner. Dai Network's
AdCast, for example, utilizes an ad-viewing window that is opened when a
visitor comes to your site. Be discriminate in agreeing to the form of ad
banners that will be served on your site. Pop-up ads, for example, may
irritate some visitors.
10. Quality and
reliability of advertising performance report. Your
ad earnings will depend on the accuracy of the reporting and statistics
used. Some networks offer several types of in-depth reporting on the
performance of the ads, allowing you to easily determine how well each
advertiser is working for you. There are those that provide you with
detailed information on how all the ads are performing, including the number
of ad impressions and click-throughs, a daily and hourly summary of traffic,
and information on which IP addresses are viewing and clicking on ads. Other
networks provide information on individual advertisers, and how their
campaign is progressing, including ad impressions, clicks, earnings, and
current payment status. They also highlight potential advertisers that are
considering your site.
11. Exclusivity
of contract. Some networks
demand exclusivity in representing your site, while others offer you the
option of signing an exclusive or non-exclusive contract. For some networks
such as Burst! Media, an exclusive contract does not necessarily prohibit
you from making advertising sales directly yourself, but you will not be
allowed to use other network agents.
12. Exit
strategy. Like any
business relationship, your needs and circumstances may outlive your ad
network. If you signed a six-months contract, for example, verify how you
can terminate the contract. Determine if there are penalties for backing out
of a contract early.
Ad networks can be very beneficial
to your online business. However, like any other business relationships, be
sure to conduct your research and read the fine print before signing up on
the dotted line
About the Author:
Steve Ma. Reyna is a staff writer
of Power Homebiz Guides.
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