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The media advertising networks market : crisis or transition?

posted Aug 17, 2014, 1:32 AM by Julien Pillot   [ updated Oct 17, 2014, 7:08 AM ]

A FAST-CHANGING ENVIRONMENT

In just a few years, advertising networks have become real suppliers of “tailored” plurimedia advertising solutions. In this way, they have largely annexed a value territory once over-dominated by media agencies. The transfer of value added activities to special operations, cross-media solutions and brand publishing has led to a sound mutation of organizations, professions and know-how in the ad networks sector. This transformation is far from being complete yet. New (r)evolutions are, indeed, expected in the next few years, especially due to the growing automation/computerisation of purchases and sales options and the increasing importance of data in marketing strategies.

 

AD NETWORKS HAVE TO DEAL WITH DEFLATION

The advertising market is now facing a structural deflationary trap. In such a context, ad networks fight for growth and the preservation of the advertising spaces value. And they are doing well : according to our data, major media advertising networks have clearly exceeded market expectations in recent years. Such results flow from their capacity to innovate, to diversify and to their high commercial tenacity. Regardless the perseverance they prove, managing the market decrease remains the harsh reality of ad networks. Torn between innovation/development requirements and costs control imperatives, ad networks are always looking for the best organisation possible, e.g. the one likely to help them to preserve a thin equilibrium between these two almost irreconcilable objectives.

 

RECONSIDERING THE CORE OF THE BUSINESS MODEL : THE ONLY WAY OUT ?

It is now urgent to reconsider the traditional ways value is created in the advertising market. Regarding the increasing advertising saturation, it is indeed no longer possible to neglect consumers preferences. The quest for efficiency is far too often gone together with the implementation of aggressive advertising facilities. Impact is not intrusiveness. Advertising avoidance strategies as  well as the rise of personal adblockers both threaten the very existence of many market segments and seriously challenge one of the great current belief that datamining will constitute the principal growth driver of the advertising market for the coming years. Indeed, there will be no data collection without ad cookies, and more generally, consumer content.

STUDY DETAILS
Series : Precepta (PTAC)
Code : 4COM14
Paperback : 387 pages
Language : French
Publication date : August 2014
Price : € 2 900 [Commercial Link]

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