What JPMorgan Says About Ad Networks

JPMorgan stated in an earlier released report called “Nothing But Net” that Ad Networks are on the rise. They define an ad network as a network who transacts, serves, tracks and reports the distribution of advertiser’s ads to the publisher’s pages. They also enable marketers the ability to advertise on many publisher sites through one central location. Publishers earn money from advertising revenue on ad networks without having to invest in a sales team or have products to sell. Ad networks also vary in the way they target a specific group of people and ways for publishers to earn with CPM, CPC, and CPA. Advertising revenues are determined by revenue share agreements in an ad network.

With that said, here’s there prediction they give for the future of ad networks in general. The global graphical advertising market as a whole will benefit from increased users using the internet to get their information and by the increased RPM’s as targeting a certain audience becomes more clear. This sector of the market is expected to increase by 22% according to the statistics of ComScore and JPMorgan.

More marketers are expected to use ad networks along with their other marketing styles this year than ever. You can see how more marketers who advertise on ad networks benefit the publishing community as a whole as a way to monetize their content contained on websites and blogs.

JPMorgan predicts that with the behavioral targeting methods now being used by the major networks will increase CPM’s and drive volume. Marketers like the idea of being able to target a certain audience and are willing to pay more for it. They say that the development of video-ad’s with contextual advertising will be valued by the ad network space.

We know that Google has been experimenting with the best way to use video ads through YouTube and BlueVerse is interested to see how this plays out over the next year. Video Capabilities certainly raise an interest when trying to target a specific user who is searching for information.

Even a newer idea is the mobile phone advertising industry. JPMorgan is watching for the development of a Google Phone device with a platform to display ads. The iPhone has the capabilities of displaying ads so we’ll watch how the success of mobile display ads develops for existing platforms.

JPMorgan also notes that with the capabilities of behavioral advertising paired up with contextual advertising will add pressure to the ad networks to deliver conversions.

The most successful ad networks will be the ones who have a nice variety of advertising platforms for its marketers with targeting capabilities playing a big role as well.