Ad Servers - Friend or Foe?

[Discovery]

Reading through the websites of Ad Server companies like Double Click's Dart and Zedo.com one might think they have stumbled onto a pretty good opportunity to expand their PPC marketing outside of the big 3.

However, if you track your ad campaigns closely you may see a far different scenario emerge. Our logs for the past year show that ad server company after ad server company delivers the worst traffic possible. High Volume, wide spread and NO conversions.

What I find interesting is that these ad servers continue to thrive. I'm curious if anyone has detailed information about how their business model works. Do they really have many direct advertisers, or are the advertisers being delivered through a confusing network of other ad servers? Is this where Google and Yahoo secretly dabble their content match in?

My gut feeling tells me that a large % of click fraud has its origin at these ad server networks and tool bar vendors.

Discovery

[huebdoo]

Discovery,
You are missing the big opportunity with AdServing and that is "Ad Serving Fees"

I am running a North American campaign worth around 5 million impressions (pretty small really) and I will be paying over $7000 in Ad Serving fees on top of the Net fees for the CPM rates for the ads. Now if I do about 5-10 campaigns about that size a year ... the fees ad up ( heck undercut the other ad servers by $2 CPM and I am still making a fortune

I would love to have a AdServer and host myself. As far as DoubleClick and others that you mentioned as an option for ads... I wouldnt do it - They all have so many hidden charges and nip at your budget so much that an initial concept and budget gets hacked away by serving fees and stuff like that

JMO -

[Discovery]

Hue, sorry but I'm not sure what your final conclusion is.

You make a fortune or they are a sham? I just was hoping to get some insight to see if there was something I was missing. I know that Dart costs a fortune and is difficult implement and to manage. The other ad server companies look like shams.

So.. you do use ad servers, but your saying your return on those campaigns are minimal? and if you had an ad server yourself you could make a fortune?

Thanks for your response

[huebdoo]

Funny - Yes I should clarify:

If you have your own ad server and a list of clients that do a lot of display to manage > this can be a cash cow as the competition (eyeblaster, Doubleclick) etc can be quite expensive (especially for rich media banners)

I find that Double Click and others come across as being cheap initally but you will find a ton of time being nickled and dimed on various fees and hidden costs.

Funny ... I'm confused reading my own post there

[Discovery]

OK Got it. Thanks -
I'm going to work with one to explore their system and learn the nuances.


Discovery