Will All Media Companies Launch Ad Networks?
Posted by Nick O'Neill on November 9th, 2007 6:00 PMMySpace recently announced that they will be launching an ad network that will enable advertisers to place ads across the social network. Facebook has also launched their own Social Ads system that many are speculating will evolve to a self-serve model similar to Google’s Adwords offering. According to Peter Kafka, MySpace’s new ad network may actually expand across other News Corp sites.
This move by Fox Interactive Media got me thinking. What if other media companies decided to launch their own ad networks? One of Google’s future goals is to automate the majority of the advertising industry. Want to buy a television spot? Go to Google. Want to purchase a radio ad? Try Google. This could pan out if Google is able to negotiate deals with large media companies. That will be extremely challenging though given that large media companies are going to try to protect their assets as much as possible.
Granting access to Google could reduce the amount each company earns from advertising. Instead, each of the media companies could develop their own advertising network. There is only one other solution: a white label ad network. If someone developed a robust ad network that could be used by large media companies, they could undercut the rates that Google is charging to media companies. This is all speculation but it sounds good in theory! Do you think other media companies will follow behind Fox Interactive Media and launch their own ad networks?
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