• by Russell Fradin , February 11, 2008

There was a time when advertisers knew how to reach their entire audiences across a small number of high visibility channels or outlets. There was a time when consumer habits were easily charted, tracked and acted upon.

But today, the consumer has seemingly infinite options. With the rapid technological advancements and resulting media fragmentation of the last 20 years, advertisers have been forced to investigate new ways to connect with their target consumers.

The internet remains the current battleground for advertisers, offering consistently growing audiences offset by consistently growing numbers of sites frequented. Traditional media owners have reacted quickly, developing Web sites of deep content in tandem with the rise of new online advertising powerhouses such as Yahoo, offering advertisers access to established and valuable audiences. However, having ostensibly mastered the new medium, the evidence indicates a continued trend of audience fragmentation online, with the average consumer now visiting 77% more sites regularly than it did five years ago (Source: Compete).

There is a silver lining to this fragmented cloud. While the market used to dictate consumer product offerings (and the consumer responded by purchasing the product, perpetuating its popularity and profitability), the Internet and market fragmentation has had a dramatic impact on this particular trend.

Now, it is the consumer who drives the market and advertisers and publishers are forced to respond to their individual demands. The very audience fragmentation that was seen as so distressing has in fact opened up new and highly beneficial sources of revenue for businesses that are able to adapt.

Although more popular products will sell, by definition, more frequently, the sheer number of products available is able to produce a greater total return. Allied to research (MediaScreen) which demonstrates that consumers prefer and are more receptive to targeted advertising that is delivered to specific sites and in tune with their interests, the Internet's "Long Tail" offers a win-win scenario for consumers and advertisers alike.

Publishers must now adapt by developing broader content to complement the deep content--capturing more eyeballs, and as a result, increasing advertising revenue. The answer for many big brand publishers is in building vertical networks, capable of selling more space overnight. With many having previously used TV, radio and cable for the same purpose, brands are currently evolving online to become network builders, sourcing inventory from a range of relevant niche publishers that in turn become part of that brand's particular network.

The beneficial result of this is that the publisher/brand is able to offer its advertisers broad content and a broader, engaged audience. Importantly, the nature of brand credibility is also evolving to complement vertical network building, with grassroots publishers' credibility rising as understanding of the power of the Internet's "Long Tail".

Advertisers are aware that advertising on niche sites offers lower margins, but have been unable to accurately quantify and qualify the nature of the site audiences, prompting them to buy on the top 20 sites. On top of this, existing advertising networks are prone to either monetize the unsold inventory of larger sites or deliver ads to users who, although they may fit the required, specific demographic, do not fit the content requirements set out in the campaign objectives.

Consequently, vertical advertiser networks affiliated with trusted publisher brands that can offer their advertisers qualified editorial content in addition to the required quantity have the opportunity to stand out in this fragmented environment. They provide the advertiser with a targeted, high-return niche audience in an engaging format easily digested by the consumer.

Fradin co-founded Adify and serves as the company's CEO. He is responsible for leading the company's vision, strategy and continued growth.