To counter various issues with international ad networks, some local media groups are considering creating their own.
The prominent issues that publishers are trying to get around include restrictions that allow only 3 ad units on publisher sites, low CPM due to contextual irrelevance, weak city based targeting and banning sites for publishing replicated content.
I reached out to Faisal Sheikh, Professor of Advertising at SZABIST and GM of Digital at Brainchild Communications to get his feedback on this venture attempt.
Which ad network do you use and why?
We use multiple Ad Networks though most of the budgets are allocated to Google, InMobi and Facebook. I am not “against” local publishers establishing a Ad Network, however I don’t believe they have a very solid case to establish one. The local publishers, especially our traditional publishers need to grow up if they want to play in the big league. What is so wrong with having only 3 ad placements available on a page, shouldn’t there be any regulations to control the number of ads that go on a page? People visit websites for content and the local publishers already have a tendency of selling every pixel. The revenue model for them should tie into their traffic rather than the space they can get.
What flaws does it have?
The Google system has flaws, but what will the local Ad Network do better than what Google has to offer? The low CPM is a result of the content and the local ad network will work most probably aim at fixing a floor price. My second contention is transparency; we already face issues with local publishers when it comes to delivery. Digital is a free market place and for once the general public finally has a choice as to what content they want to consume. Banning sites that replicate content will not help at all since there are a number of possibilities for such sites to generate revenue. Our TV channels are copying content from YouTube and other international sites and running it on TV, I don’t see them making any effort to improve their own content and in a number of cases I have see that the content our traditional publishers claim to have lost out on, is actually covered by a licensing agreement.
What should the ideal ad network do in line with expectations from your clients?
Forget weak city-based target, I would go for the current targeting available on Google or any other International Ad Network any day over whatever the local publishers offer. Our print industry has not been able to offer details of their subscribers; aren’t these the same people who are interested in establishing the network. If the publishers have a subscriber base and they create content, then shouldn’t the consumer theoretically pay for access? What are the best reach numbers they can offer to an advertiser, is this an audience I cannot get on another network?
Should this venture go through, what challenges will the initiators face early on?
Keep in mind that the local ad network will operate along the same lines as APNS and PBA. Traditional cum Digital Publishers will push for it since they can squeeze the advertiser into paying by blocking them from other media. Digital only publishers will not be able to afford it, while digital-only agencies will exploit it to the fullest.
