Consolidation to boost online ad market

 

The online advertising market is set for a major boost, according to analysts, as recent consolidation in the online advertising market leads to big gains for advertisers..

Jupiter Research said that, despite fears over recent acquisitions such as Google's purchase of DoubleClick, ad vendors will be able to lure new advertisers with new services and combined advertising packages.

"After acquiring ad networks and ad servers to round out offerings, the near future of online advertising will look somewhat like pre-cable TV, with an oligarchy of powerful conglomerates controlling prices, audiences and thus advertisers," said Jupiter Research president David Schatsky.

"Much of the premium content on branded websites will remain beyond their grasp, but relationships with such sites will continue to strengthen."

Analysts predict that the consolidation resulting from the recent rash of acquisitions will allow vendors to expand their offerings.

Researchers noted that just 23 percent of advertisers currently believe that online ad networks are more efficient than deals with individual sites, a figure that analysts predict will soon change.

As ad networks continue to make acquisitions and add new services, analysts predict that the networks will become more powerful and lure in new business.

"The impetus for acquisition is obvious for the conglomerates," said Jupiter Research online advertising analyst Emily Riley.

"The potential to improve their portfolio of offerings to advertisers and publishers, as well as overpower their competition, theoretically lies in the control of ad servers and ad networks."

Copyright ©v3.co.uk


 
 
 
Top Stories
Photos: iTnews Benchmark Awards countdown begins
Just a few days left until entries close for 2014.
 
Australian Govt to rethink cyber security strategy
Six-year old policy to be refreshed.
 
The failure of the antivirus industry
[Blog post] Insights from AVAR 2014.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
Who do you trust most to protect your private data?







   |   View results
Your bank
  38%
 
Your insurance company
  3%
 
A technology company (Google, Facebook et al)
  8%
 
Your telco, ISP or utility
  7%
 
A retailer (Coles, Woolworths et al)
  2%
 
A Federal Government agency (ATO, Centrelink etc)
  20%
 
An Australian law enforcement agency (AFP, ASIO et al)
  15%
 
A State Government agency (Health dept, etc)
  5%
TOTAL VOTES: 1007

Vote