Comments on: The Disintermediation of Ad Agencies

By: David Shay

David Shay — Wed, 18 Mar 2009 15:39:15 +0000

Here is CPX Interactive CEO, Mike Seiman on this topic: "Where to draw the line between ad networks and agencies" http://www.imediaconnection.com/content/22208.asp

By: Martin

Martin — Wed, 18 Mar 2009 14:55:36 +0000

Interesting post, I think the way that things will go lies somewhere in the middle as Darren has commented here. The reality is that networks and agencies are converging in to a middle ground where they both have a valuable role to play depending on the advertiser needs. Our agency, Infectious Media, is starting to pitch an exchange product and the reality is that it's most appealing to advanced clients who spend large DR budgets on networks. It's a more complex process for a client to work with an agency rather than with a network and for many who don't spend huge amounts they would rather this type of activity stayed as a nicely packaged up 'media buy' rather than something that takes up a lot of their time to implement. I do think however that networks without optimisation technology or a data source that rely on pure media arbitrage will soon become a thing of the past and leave smart networks to dominate that side of the space.

By: Ciaran

Ciaran — Sun, 15 Mar 2009 13:14:16 +0000

Great post, Joe. And kudos to Darren for putting his white paper out there. I'm a little concerned that there is almost too much focus on agencies and ad networks - and not enough on the publisher.

Where are the opinion pieces and white papers arguing the case for publisher using the exchanges? In the midst of all this excitable talk about agencies, networks and disintermediation, we are forgetting who actually owns the inventory - eh, the publishers.

Maybe they will decide to band together and sell their inventory on the exchanges, cutting out the ad networks all together. Maybe some big publishers in particular verticals might think that they don't need the ad networks. They might hire specialist ad exchange traders to sell their unsold ad space for the best price available - and wrest the bargaining power from ad networks and ad agencies.

If we are going to make the exchange model work, the case for the publisher needs to be made. And I would say to publishers that they need to start properly investing in this area, getting the right expertise to help monetize their unsold inventory. While ad agencies and ad networks scramble for media buying budget, the publishers will hopefully wise up tot he changing times.

By: Raj

Raj — Sat, 14 Mar 2009 05:38:06 +0000

I think it's more the "Evolution" rather than the Disintermediation of Ad Agencies. The agencies will evolve. Many of them are in talks w/platform companies that will allow them to see more and buy efficiently on exchanges as well as w/ direct publisher partners. And agencies that are adopting solutions to see and transact on data points for their brands (in some cases across multiple media outlets) will win. The lines are getting blurred, the titles are getting stripped away: agencies are becoming ad networks and ad networks are becoming agencies. There are some networks and agencies that won't make it, but those that have technology, data and deep relationships will provide value to the ecosystem and have the option to break out of their traditional classification.

By: Matthew DiPietro

Matthew DiPietro — Fri, 13 Mar 2009 21:29:23 +0000

FM is really a different animal than the ad networks and exchanges you list in the post above. FM is a media company that works with a small exclusive group of independent publishers.

That said, I don't think that ad agencies are going away. They'll have to evolve just like the rest of us, but their duties are much needed by large brands with multifaceted marketing and advertising programs. At FM we work with smart ad agencies everyday and their value for brand marketers is apparent.

By: Darren Herman

Darren Herman — Fri, 13 Mar 2009 19:31:30 +0000

Thanks for the insight re: my white paper. I do not think that ad networks are going to go away in mass, I do think that they are going to have to change their business model to service agencies. Agencies won't go away either - after all, ad networks don't know how to plan big ideas around television, radio, print, ooh, and again, digital.

The ecosystem is changing - and that's the goal of this white paper.