Commentary

If you were doing business with someone 60% spread, wouldn’t you offer them a little bit less?

Good question. And it was posted by Jordan Rohan, who followed up on his claim to bring some light to the ad network business with a fascinating analysis showing the margins of some of the bigger, publicly traded ones for which the data has been disclosed.

interClick, Burst Media, and ValueClick, each are generating margins of 45% to 48%, according to Rohan’s analysis.

In other words, next time you do business with an online ad network, consider the fact that for every dollar you spend, you are turning 45 cents over to the advertising network.

Something to keep in mind.

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