OPA: Content Sites Better Buys Than Ad Networks
- by Mark Walsh @markfwal, April 27, 2010
The report is the fourth in a series of studies by the OPA finding member sites like USAToday.com and Discovery.com outpace Internet industry norms (based on Dynamic Logic's MarketNorms) as well as ad networks and portals in ad effectiveness and brand impact.
Within the key 18- to 34-year-old demographic, the study showed ad networks had a negative impact on purchase intent and failed improve brand favorability.
"Ad network performance has declined to a point where they provide no significant increase in purchase intent to advertisers, said OPA President Pam Horan. "As a result of this insignificance, the average brand campaign may not achieve greater brand lift by advertising on an ad network."
The most popular ad sizes -- medium rectangles, leaderboards and wide skyscrapers -- performed significantly better on branded content sites across most ad metrics. Video ads also showed better results on OPA sites, especially in purchase intent, ad awareness and message association.
Consumers are also more likely to be involved with interactive ads on content sites, with a higher impact on awareness, message association, brand favorability and purchase intent.
In terms of industry categories, CPG, entertainment and telecom ads on premium sites surpassed industry norms, especially in more metrics like brand favorability and purchase intent. By contrast, telecom and travel ads on portals, and technology ads run across ad networks, led to statistically negligible purchase intent.
A separate study by research firm Advertiser Perceptions recently found 52% of agencies and marketers plan to spend more on content sites this year this year, while only 35% were likely to increase budgets for ad networks. To help lure more ad dollars to branded content sites, the OPA last year introduced three oversized ad units, including the widespread push-down format.
However, spending on performance-based advertising -- more closely associated with ad networks -- continued to increase last year. The category accounted for 60% of online ad revenue in 2009, up from 57% the prior year. CPM-based buys decreased from 39% to 37% of buys and hybrid-pricing models fell from 4% to 3% of ad sales, according to the Interactive Advertising Bureau.
This is really interesting stuff! Great insight for Advertisers.
What about ads on content Sites delivered by ad networks? The study makes no sense at all, maybe you can compare news and magazine sites but ad networks can consist of both. Ad Network is no content category it is just a way of organizing media and audiences with or without media brand.
Arne, I'm right there with you. The study is a) flawed because it was done by the OPA so of course their sites are going to perform better and b) can't use ad networks as a separate category for the following reasons:
1) they organize content sites for the ease of purchase for agencies
2) see reason #1 - it's made up of content sites.
Agree with Matt and Arne, the OPA keeps putting out these studies that toot the horn of "content sites" under the guise of an unpartisan organization. The OPA should be more transparent about who they are & let people come to their own conclusions about whether these studies are biased or not.
I agree with Arne. What if the ad network only serves ads on premium content sites?? Its not ad networks are serving ads on the sides of buildings. They serve ads on......drum roll....Content sites.
I would echo the sentiment of other commenters in regards to the integrity of the study. However, a content site having a hybrid model of a premium inventory sales team and leveraging a network for their remnant inventory could be what this study is speaking to as well. Unfortunately, the link to the report gave me a 400 error so I am blind in that assertion.
Clearly, Arne & ChrisK have beaten me to these same comment[s], so I would be curious as to the context of Ms Horan's statement...[let alone the OPA study?] From the 'User' side...they don't know if the ad is from the 'Brand' site, or a partner 'Network' site.
Seems like more info might be required here...?
Nonsense.
As presented at the Pubmatic event last fall, using the very same Dynamic Market Norms data, recommendation intent saw a 13.6% lift on ad networks compared to a 1.4% lift on publisher sites. Ad networks also outranked sites in brand favorability.
Where do premium ad networks run ads anyway? That's right, on premium content sites.
Advertisers would benefit from a study on how to use sites and ad networks in conjunction, as they do in practice today. Buyers already understand the benefit of using sites AND ad networks...their suppliers should as well. Collaboration - not contention - is the path to growing online sales.