Ad Networks and Personnel
Om Malik’s new podcast focuses on the continuing repopulation of ad networks in the web2.0 space. He points to a shortage in top-notch sales personnel as the biggest stumbling block for these networks…
The FeedBurner Networks and Adify are two recent examples of companies that are looking to cash in on the current boom in online advertising, and creating their own networks. They might not be alone, and even some of the older Web 2.0 properties might be looking to make an online advertising network play here. With nearly $16.7 billion being spent on online advertising, it is hardly a surprise that almost every is willing to throw their hat in the ring. The situation reminds me of the early days of Web 1.0, when ad networks popped up on a weekly basis, only to vanish is mists of time.
Beyond that there are some other problems which these networks will have to contend with: the availability of crack sales teams with deep relationships with the advertising community, that typically moves at a pace slower than the Silicon Valley. The shortage of advertising sales talent is the Achilles heel of the new Web 2.0 ecosystem. (Ironically, the old media has a built in advantage here.)
What is true for the web2.0 side of things is also true for the cpa network space as well. These networks, no matter what their payout rate, publisher incentives or flash landing pages, all have their foundations in the relationships. Finding people with the right combination of meaningful contacts, charismatic personality and a healthy ability to “sell” can make or break a network, be it web2.0 or cpa in nature.
As Jeff Molander rightly points out, this relationship based foundation inherently affects the scalability of these models. Could that concern, along with competition in the space from within and without (Google?) and increasing awareness of security needs move some of the smarter cpa networks into a convergence with the networks of the web2.0 space? Give Om’s podcast a listen and note the similarities and differences that exist.
