3 questions with AdBrite's Iggy Fanlo

With online ad revenues expected to increase by at least 10% in 2011, more businesses are entering the online ad space. Advertising Network? Exchange? Not sure which is the right fit for your business? You aren't alone, and the waters become more muddy each day.

by Kristina Knight

What is driving online ad growth? The economy to start, but one expert says it is more than an improving economy.
"There is also a long term shift from offline media to online media," said Iggy Fanlo, AdBrite CEO. "What we're seeing is people are finding their customers are online and following them into the space."
I recently had the chance to chat with Fanlo about how ad exchanges are beginning to appeal to more advertisers and how that is changing the ad space.
"Typically what happens is that advertisers work with advertising networks as a convenient solution," said Fanlo. "It's less technology and more hand-holding, but they are paying a premium price for that. So when advertisers go to exchanges they are able to purchase at a more 'wholesale' price - so there is better cost efficiency."
What are brands doing that is cutting out the networks? Primarily going it alone.
"The consideration of exchanges is increasing almost daily as advertisers see the ability to purchase large scale, with more audience targeting and at wholesale prices," said Fanlo. "The advertisers do need to be more technically savvy to buy from an exchange, but they can either develop that capability in-house or they can work with DSPs to learn."
Transparency is also improving, although there is still work to be done there. According to Fanlo all advertisers need to do more to increase online transparency.
"Advertisers haven't really put their money where their mouth is in this one," said Fanlo. "They talk about wanting transparency, but they don't penalize [ad networks, exchanges or DSPs] who don't provide transparency; they aren't taking the steps to ensure they have transparent buys. Advertisers have the dollars, if you will, and they could boycott those platforms that don't offer transparent buying offerings. It's a bold step, but that is what will drive more transparent transactions."
Tags: ad networks, AdBrite, advertising exchanges, Iggy Fanlo, online advertising