Friday, June 06, 2008

Ad Networks Devalue Content Power

Great, great, GREAT article about ESPN's view of the value of their web content versus the commoditization of internet advertising.

ESPN Turns Off Ad Nets
Excerpts from the article:
Top Web publishers are planning a revolt. Even as more prominent sites experiment with selling remnant inventory through online ad networks, and in some cases ad exchanges, ESPN.com is saying thanks, but no thanks.

ESPN's decision crystallizes a philosophical debate in the online ad sales industry that has intensified since the Interactive Advertising Bureau's annual meeting last month when during a keynote address, Martha Stewart Living Omnimedia media president Wenda Harris Millard gave her now famous warning against selling Web inventory like "pork bellies."

Two sides have formed—those who want to protect traditional, direct selling of premium content brands and the math-loving crowd that favors automation and data. The math lovers make the traditional sellers nervous."There is a genuine concern about commoditization of brand inventory by some of the networks," said Millard in an interview.

...ESPN, see networks as profiting on their brand investments and their user data, while also threatening their own marketer relationships. Many just think using networks devalues the power of content.