Monday, March 31, 2008

Verticals Rise Above Remnants

Remnant advertising networks -- the bottom feeders ala Google text ads -- are in decline while vertical ad networks are growing.

Russ Fradin -- who runs vertical network platform Adify (with whom I partner) -- discusses the recent news about ESPN ditching its remnant ad network. If ESPN can do better, they should move away from the lowest CPM alternative.

Vertical network GLAM is shelving its house ads, which is the freebie version of remnant ads. GLAM was giving away free promotion to its partner sites when it couldn't sell an ad. I believe in the monetary and business relations value of this policy, and it may comeback to bite GLAM when smaller publishers leave for other sites.

House ads are better than remnants for vertical networks because at least it keeps the money in the family of focused sites instead of scraping for nickels with unrelated advertising that weakens the value of the network. Vertical networks are still establishing credibility so I'm surprised that GLAM took this step backwards.

Posted By John Gartner at 08:40 AM
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