The Wall Street Journal is one of the latest to point out that the field of ad networks is overcrowded. Expect a steady stream over the next number of months of ad networks closing their doors, laying people off or consolidating. For ad operations it’s important to prepare for the possibility that a network partner might shut down. Hopefully, all that means is moving to another network, but having gone through myself a few years ago, it can also mean non-payment, unresponsive ad tags and missed revenue goals. Here are some ideas of how to proactively protect yourself from failed ad networks:
Diversify your ad network portfolio: Depending on your reliance for ad network revenue, it’s best to have relationships with multiple networks. Even if you are only running network at a time, in the event it stops, you’ll want a back up network ready to go. If you run multiple networks, you’ll want to think through reallocation of impressions if it becomes necessary.
Protect yourself: Make sure your legal team is looking at all ad network deals and make sure you understand what protections exist in case of problems. Make sure your legal team understands how networks work and the inherent risks that come with them. As the department responsible for the ad network relationships, you need to know what the contract says. Additionally, make sure a thorough credit check is done.
Keep tabs on your networks: Keeping tabs can mean talking with a network representative on a frequent basis to keeping track of their payment schedule. A huge change in the number of campaigns running through a network might indicate problems or a new business model and should be investigated. Additionally, keep a test page for each network where you can quickly check for latency issues.
Align with the right partners: The reason that some ad networks will fail is because they don’t offer enough differentiation from their competitors. If that’s the case, why do you think the networks you are working with are going to succeed? Most likely the answer is going to lie in their ability to provide advertisers value that aligns well with your site’s audience. If the value equation is weak, you should be concerned.
Outsource: Network optimization companies like AdMeld, PubMatic and Rubicon Project are there to assist with ad network management and they monitor the ad network space. Make sure you understand how they handle ad network problems and what protections are in place for you. This is one of the reasons to consider using a network optimization company.
If you and your company have decided that ad networks can help reach your revenue goals, the key is to truly manage those relationships. The risks involved in working with ad networks is more dependent on your approach to them than the ad networks themselves. If you do the proper due diligence and protect yourself, you will most likely be working with the ad networks that will be around for some time to come.
Rob Beeler is Vice President of Content and Media for AdMonsters and has worked in Ad Operations for over ten years. Rob started attending AdMonster events in 2004 as a member and will be in New Orleans on March 8th for Publisher Forum US XX.