On VentureBeat this morning Jeremy Liew compares the value of targeted advertising via ad networks and "synthetic channels" to untargeted advertising. Naturally, more targeted readers mean higher value eyeballs. But what about organically organizing "networks", like the Google adsense model. These use context to construct and reconstruct synthetic channels over and over. For those running blogs, like myself, data on these channels would be especially interesting.
Alec Saunders is the Vice President of Developer Relations for BlackBerry make Research in Motion. This is his personal blog, with his personal viewpoints. Prior to this Alec was the CEO and co-founder of Calliflower — the easiest way to hold a meeting, online, on a conference call, or on the go. A double-decade veteran of product management and marketing, he spent nine years at Microsoft where he helped launch Windows 95, the first two versions of Internet Explorer, the Universal Plug and Play initiative, the push into home markets, opt-in email marketing and what might well go down in history as the very first direct email list ever.
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One of the advantages of ad networks is that they also allow members of the network to offer broader audiences to any advertisers they solicit themselves.
Two advantages to this – larger audiences makes it easier to sell ads as each site doesn't need to have huge traffic – just targeted traffic. The cost of landing adveertisers is also spread across multiple sites – making it possible for all ads to result from direct relationships between network memders and the advertiser.
The net result is more money/ad because the network 'own' entire relationship with the advertiser – not just the display portion.