Monday, February 25, 2008

Avenue A Concentrates on Verticals

Ad agency Avenue A | Razor fish reports that it is spending more on larger focused buys while moving away from portals and smaller ad networks. The agency said its spending on portals dropped 5 percent in 2007 while vertical sites now constitutes 39 percent of its spending. CPMs on verticals rose by 30 percent, 10 percent more than average.

Agencies such as Avenue A are streamlining their purchases by going with networks that can provide a targeted audience, and we can expect that trend to continue. The agency said it spent 50 percent more with the top 5 ad networks but spending elsewhere remained at the 2006 level.

Our billings with ad networks grew 34% year over year, with nearly all of this increase in spending directed toward the top five networks. The top five saw an increase of more than 50% over 2006, while total billings for all other networks were flat.

Portals are the long hanging fruit of advertising, and while they continue to attract large followings, they'll have to do a better job at targeting if they want to raise their CPMs and please the largest agencies.

Via MediaPost

Posted By John Gartner at 09:18 AM
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