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Is Anyone Not Launching Their Own Ad Network?
from the ads-everywhere dept
As Google solidifies their position as an ad network rather than just a search engine, and others are looking to start up the own focused ad networks, it looks like some recognizable names are jumping on the bandwagon as well. ABC has apparently realized that, rather than working with an ad network, they can build their own ad network for all of their affiliate sites, with a focus on local advertising. Basically, the idea is to make it as simple as possible for a local business to go and buy advertising across specific ABC affiliates. While it's not entirely clear how "self-service" this actually is, that's going to be the most important part. One of the often overlooked aspects of what made Google's ad network so successful was the fact that it was all self-service. It was incredibly easy to buy an ad -- unlike the more traditional ad networks that made it something of a hassle.
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PPC Ad Revenue Will Eventually Go Down
What makes Google such an effective ad network? The fact that they have so much traffic on their search engine!
Media websites )e.g. News) also get an awful lot of traffic, they should be able to get enough advertisers to pay their bills.
Eventually, ad networks like Google will have to reduce their revenue share to convince large media companies not to roll their own networks. And then their stock price will start coming down, down, down (they all do, eventually)!
That's why Google's aggressive roll out of new ad-supported services (like Gmail) is so essential. To remain competitive they need that core traffic that doesn't come from affiliates.
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Yes.
Ask Jeeves
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