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February 4, 2011

Ad Networks and Agencies:
The Next Wave in Display Advertising - Feb '11

Overview

After years of unfulfilled promise, local ad networks have reached maturity. Stories of CPMs doubling and large “spot” buys mean that the floodgates have begun opening for networks that offer targeted banners down to local websites. It may mean a bonanza for local media managers, many of whom operate sites with half their inventory unsold. The biggest beneficiaries are likely to be newspaper, TV and yellow pages websites, which control 80% of all local banner advertising, as well as the ad networks themselves. This report details the movement in online network banner placement and a flip-flop change in the amount of sales for untargeted or “run of site” banners (which is expected to fade into almost nonexistence in five years) and the amount of targeted display advertising. The 26-page report offers includes 15 pages of tables, charts and other data detailing the upward movement for local online network advertising.

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It's always good news when we can tell our clients to expect money to drop in their laps, and here's something that foretells that possibility: Online ad networks have finally hit a tipping point, which has begun to open the floodgates for national, regional and local advertising placement. In short, a lot of that unsold ad inventory at the local level is about to be snapped up by higher-CPM network buys.

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