We’ve all read the grim forecasts -  the growth of online advertising will see a significant decline in the coming year.

Mark Walsh of MediaPost recently addressed such predictions in two articles: “Citi: Online Ad Market Fading Fast,” and “Slump Prompts Focus On Targeted, Accountable Ads,” an interview with Christopher Vollmer of Booz & Company. 

So how will shrinking budgets affect the industry, and ad networks in particular? 

According to Mark Mahaney of Citi, “there appears to be a flight to quality and to vertical ad networks.”  Whereas eCPMs on other ad networks are steadily declining, he predicts that “targeted niche (CPMs) should continue to rise as advertisers seek out specific audiences at the expense of sites with wider reach.”

Likewise Christopher Vollmer sees a promising future for vertically focused networks. With more than 300 ad networks competing for waning dollars,  “the ad networks that survive will be those that are truly more vertically focused in audience, editorial and branding and have the targeting and optimization capabilities that can support more of a premium positioning.”

Facing lean budgets, marketers need to know that their ads are reaching the relevant audiences in premium placements that allow them to strengthen their brands even as the economy weakens.

Customer Testimonial

"Vertical networks are emerging as one of the most important innovations in online advertising. By pairing leading media brands with high-quality long-tail content, Adify has taken the lead in this rapidly growing market." Nicole Rousseau
Vice President of Retail Marketing
HSBC