Advertising networks continue to do well and are becoming the preferred advertising avenue for companies trying to reach consumers on the internet.  One reason for the influx in spending is because of the competitive prices they charge to reach a targeted group of consumers across the network when compared to traditional advertising marketing on the internet.  It will be interesting to see how these networks evolve with technology.  Technology holds the key to the future methods of online adveritsing. Will these advertising networks revolutionize the internet in the years to come or is it just a trend that will come and go? In my opinion, I feel this is the beginning to the industry standard that is evolving, afterall, it is all about delivering performance to the advertiser for their dollars, not just spending their money.     

According to a report by Imran Khan, an Internet analyst at JPMorgan Chase, ad networks “are growing much faster than the general graphical advertising industry.” He estimated that the top 20 ad networks had earned $2 billion in 2007, or 14 percent of the display market.

The reasons ad networks are thriving are price and improved technology. Ad networks charge much lower cost per thousand ads served (known as CPMs), as low as $4 on an ad network with some targeting, compared with $40 and up for some ads on premium sites like MSN or Yahoo.

(Via NYTimes.com)

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