• ClickZ, Monday, January 12, 2009 12 PM

Vertical ad networks came to the fore in a big way in 2008, as dozens of publishers began selling ads on partner sites using platforms created by companies like Adify. The vertical network provider now powers some 140 such networks, while competitors like Seevast and DoubleClick supply tools and sales support for scores more.

In a way, vertical networks are publishers' way of fighting back against the massive one-stop networks being built by Google, AOL, Yahoo and Microsoft. These Web giants claim they have the targeting capabilities to deliver any audience segment, which, in theory, would negate the need for targeted vertical networks. ClickZ asks advertisers and marketers whether there's room in the industry for both approaches.

For the moment, anyway, it would seem that there is. Sarah Zielie, senior interactive media specialist at Minneapolis-based Periscope estimates that 25 percent of her agency's overall ad network spend now goes to niche networks. "Our spend has been shifting in the favor of vertical ad networks, reducing the budgets of both content placements and general ad network placements," she said. Avenue A/Razorfish's Chief Strategy Officer Jeff Lanctot, says "The vertical ad network model provides more of a brand filter for Martha Stewart or MTV...In my view it's not better or worse than the traditional ad network model, but it's been a better filter for us."

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