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Stop treating ads like pork bellies
In August, the IAB/Bain Digital Pricing study took many by surprise when it revealed publisher utilization of ad networks and markets jumped from 5 percent of sold inventory to 30 percent from 2006 to 2007. The data rekindled a smoldering debate that was first sparked by IAB Chairman Wenda Harris Millard back in February when she admonished the industry by saying, "Don't trade advertising space like pork bellies."
Judging from the IAB numbers, publishers did not heed Millard's warning and it's no surprise that the topic of pork belly sales -- and whether they’re going to be the demise of the industry -- has flared up again. The debate comes down to this: do commodity markets reduce the value of advertising inventory, and in the long run will they be better or worse for the industry than traditional direct sales?
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