Print media advertising is on a rapid decline. Online digital advertising is growing even in this down economy. Vertical or long tail advertising leads the way in growth. Participating in this growth now will lead to a long term profitable business.
A ZenithOptimedia study revealed that Internet advertising will increase its share of the world ad budget from 8% in 2007 to nearly 14% in 2010.
The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP announced that Internet advertising revenues reached almost $5.9 billion for the third quarter of 2008 representing an 11 percent increase over the same period in 2007.
Ongoing studies show these numbers holding even in a down economy. Why? Because Internet advertising provides the best return on investment, it gets to the buying audience and it supports brand recognition.
With the growth in Internet advertising, publishers (web site owners) and advertiser’s needs are growing. Both want to see a return on their investment while controlling budgets, generating income and getting maximum market exposure to their target audience. Their wants and needs are growing rapidly.
Advertisers need to gain solid market intelligence, control advertising budgets and generate quality leads all while increasing brand recognition.
Publishers need ads being placed on their valuable web site real estate that relate to their market. This maximizes revenue and increases web site visibility supporting the publisher’s marketing programs. This is only done with market specific sales representation and market specific marketing programs.
Only dedicated vertical market advertising networks provide advertisers and publishers what they want and need today. They have the ability to grow to support what advertisers and publishers will need as their experience and markets grow.
Horizontal ad networks cannot support the vertical advertisers and publisher’s needs, today or ongoing. They cannot reach the long tail markets, nor do they really want to, even though some say they do. With the exception of Google, MSN, Yahoo, Ask and Alexa operating costs for the run of the mill horizontal ad networks are too high. Note how many horizontal ad networks are having financial difficulties. Note how expensive it is to join their networks. Most require a minimum monthly buy that kills most budgets for the advertiser that only needs to reach the long tail market while maintaining brand recognition.
What builds a successful vertical ad network?
o A sound business plan backed by market expertise
o A strong publisher base with extensive long tail market reach
o Targeted marketing programs that support advertisers brand management
o It provides advertisers and publishers full control and instantaneous feedback
o It supports all IAB standard ad units
o CPM (Cost Per Thousand) ad views that generate a high return on investment for advertisers and quality income for publishers
o Market specific and technical support for both advertiser’s and publisher’s
Who are the most likely to succeed?
o Entrepreneurs with advertising sales and marketing experience in a vertical market
o Media companies that want to expand their market penetration in defined markets
o Agencies that want to build clients brand recognition as well as sales
Profitability for a well positioned vertical ad network can come quickly. With a very small investment you can build a respectable income and asset value in a very short period of time.
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