Ad Networks & Strategy Quote
I’ve been a fan of Jeff for years and have met him on occasion at his year partner summits. I agree with him on the point below, extracted from an interview on peHub.
What’s clearly not working, or, at least, won’t in the harsh economic climate we’re entering?
One interesting place to watch is the ad network business. It’s been a real boom time for them, and frankly, it’s been an easy business in which to succeed. There are probably more than 300 ad networks up and running and they aren’t differentiated on technology. It’s all about arbitrage; they buy inventory for a low price and sell it for a higher price and add little value in between. I think there will be real shakeup in that business over the next year. In a downturn, it becomes imperative for people to become more efficient, and in an efficient marketplace, I don’t think there is room for these players. I’d guess that dozens and dozens of ad networks won’t make it through the next year.