It'll stay interesting for some time to come.

The real value that a network or exchange provides to the end-advertiser or the agency is that they've already done the hard work of building scale on both the publisher and advertiser side. By bringing both ad supply and ad demand to the table, the exchange / network allows their advertising clients to focus on adding value by testing different targeting options, messaging, creatives, etc. Those are the functions where an agency can add tremendous value, because presumably they're directly involved with developing their client's brand identity in the first place.

The other point I would add is that there are now so many exchanges and networks that any advertiser or agency can try out for themselves, and start using within minutes. The role that an agency can play in helping a client navigate these choices is similar to the role they've historically played in TV placement. Agencies help manage the creative aspects, and they also help manage media planning across platforms so that the client sees the best ROI possible.

It is too difficult to talk about 'ad networks' as if they are all one large blob. Companies with specific optimization technologies will continue to succeed in specific categories - TURN, Quinn Street, etc...

Companies with great reach and deep integration across large numbers of websites will continue to succeed in specific verticals - Glam, GayAdNetwork, FM, MomLogic, etc...

Agencies can replace mass reach vehicles for retargeting - they have better access to create segments with their clients data and better negotiating power, especially in this market.

Russ

Building Virtual Brand Networks or something similar for clients and being able to action them across exchanges and other media sources is going to be very important to align brand goals.

After all, show me ANY ad network that is fully aligned with a media agency and client.

In response to this, it will not be that simple for agencies to disintermediate ad networks anytime soon. There is an inherent DNA issue that prevents agencies from going around networks anytime soon (not to mention a fundamental technology gap). The agency model is a service model while the ad network model a supply chain management model. Agencies simply do not have the tools or the expertise to execute a supply chain play. I would be happy to share my thoughts even further on this but I would predict that large holding companies will start to align themselves and ultimately acquire ad networks before they start to circumvent them. Furthermore, look for networks to start disintermediating agencies. Look at Specific Media's relationship with Ford over the past couple years. This was not an anomaly but rather the beginning of a paradigm shift.