Comments on: More Ad Networks Coming, Not Less – Says Jeremy Liew of Lightspeed Venture Partners

By: Zach Coelius

Zach Coelius — Tue, 28 Apr 2009 22:57:14 +0000

Even more important will be data, vertical specific knowledge and technology that will allow sales guys to carve off niches where they can deliver results. I agree that more companies are coming.

By: Tim Ogilvie

Tim Ogilvie — Thu, 23 Apr 2009 21:33:09 +0000

My guess is that this area looks more and more like the financial services / brokerage world where strong individual salespeople "own" their client relationships and bring them from one firm to another if/when they switch.

By: jeremy liew

jeremy liew — Thu, 23 Apr 2009 04:57:56 +0000

Div,

I agree; sales execution is the most difficult thing to excel in, and Avenue A is well positioned to diversify given their account control in a lot of advertisers. However, as the rest of the ad network value chain becomes commoditized, this allows small groups of ad sales professionals to potentially break out on their own and carry client relationships with them. Additionally, as international becomes more important, it is hard to imagine that a US based ad network will do a better job of sales execution than a locally grown team that knows the market and the advertisers. That is where I think some of the proliferation may come from

By: Div Bhansali

Div Bhansali — Wed, 22 Apr 2009 23:58:55 +0000

It's certainly an interesting premise, but of the four criteria Jeremy laid out for a successful network, clearly the most problematic for any new entrant is the sales execution. But isn't that always the most difficult hurdle to overcome for a new entrant in virtually any industry? The ability to differentiate (via marketing) and articulate (via sales) is what defines the strongest competitors and keeps them moving forward, even in data-transparent industries where the apparent cost of entry is minimal. It's why Platform-A is moving aggresively into new sales channels, as well as into self-service with BidPlace SB. It's almost impossible to differentiate solely on inventory or data, but better client acquisition and retention methods still make all the difference. Bottom line: while sales execution is only one of many factors in the success of a network, it's still the most difficult to penetrate. Some new market entrants are doing it exceptionally well; I suspect many of the others will find it to be an insurmountable challenge.