Collective Media Ad Network Study.

Results of the third annual Ad Network Study released by Collective Media, a leading online advertising network and technology provider, find that interactive agencies and advertisers continue to use and invest in online ad networks despite the current downturn in the economy.

Eighty-nine percent of the nearly 500 respondents intend to work with ad networks in 2009, up 5 percent from 2008. Over 50 percent of respondents expect to spend up to 15 percent of their online budgets with ad networks – while another quarter of respondents (24 percent) indicated that their ad network spend will represent up to 30 percent of online budgets.

Other key findings include:

— Short List of Ad Network Partners: Most agencies and advertisers appear to have established a limited number of trusted ad network partners. Over 70 percent of respondents surveyed work with only one or two ad networks on an average media plan.

— Differentiation in a Crowded Field: Seventy-one percent of respondents noted that there are now too many ad networks, up from 62 percent in 2008. When asked about what best differentiates one from another, the top two responses were inventory quality and targeting, followed by site transparency and level of service. These answers dovetail with respondents who cited transparency, quality and control as top reasons why they remain concerned about working with some ad networks.

— Ad Exchanges Won’t Replace Ad Networks: Although 4.5 percent more agencies and advertisers said they worked with ad exchanges than those surveyed in the prior year, these respondents remain in the minority. Most respondents (85 percent) did not work with exchanges, and only 7 percent believe exchanges will replace ad networks.

— Targeting and Efficiency Matter Most: Efficiency continues to be the number one reason why agencies and advertisers use ad networks (72 percent), but not at the expense of ad environment and quality. This is demonstrated with 23 percent of respondents citing inventory quality as the largest differentiator between ad networks, with targeting a close second with 19 percent.

— Continuing Growth in Brand Advertising: More than 50 percent of respondents continue to work with ad networks for both their branding and direct marketing plans. At the same time, there was a statistically significant decrease between 2007 to 2009 in the percentage of those using ad networks for only direct marketing plans – which correlates to an increase of marketers using networks strictly for branding purposes.

— Warming to User-Generated Content: User-generated video is still most-cited by respondents when asked on which types of content they will not run online advertising – with 63 percent of respondents citing ‘Blogs’ and 24 percent citing ‘Social Media’ overall. However, social media and user-generated content is garnering greater acceptance across the board with all categories improving year-over-year.

“Targeting emerged as the primary area of interest in this year’s findings, relative to how advertisers and agencies are leveraging ad networks,” said Joe Apprendi, CEO, Collective Media. “Over 60 percent confirmed using demographic, behavioral and contextual targeting. And we saw strong growth over 2008 in those using both site and search retargeting. These findings support the shift Collective Media is seeing among advertisers and agencies toward buying audiences rather than just sites. Based on these survey responses, we expect this trend to continue across 2009.”

“The ability to effectively target audiences, the quality of inventory offered, and the level of transparency and service provided are all critical drivers in the success of an ad network program,” said Brian Mandelbaum, VP, group media director, interactive, Cramer-Krasselt. “While there are hundreds of ad networks in the market today, the trusted partners are those that maintain appropriate focus on the areas that really count.”

The survey, which was fielded by independent marketing research firm, Sterling Research Group, Inc. between February and March of 2009, garnered close to 500 responses from online media decision makers – double the number of respondents to the 2008 survey. The goal of the survey is to better understand the role and value of online advertising networks for both interactive agencies and advertisers.

To read results CLICK on link below:
http://www.collective.com/survey_results>