Despite Dominance By A Few, Independent Ad Networks Can Continue To Rise: Report

With Google’s (NSDQ: GOOG) $3.1 billion acquisition of DoubleClick closed this week, it might seem like there’s no room for smaller ad networks. But a white paper by media investment bank DeSilva & Phillips — Ad Networks: Monetizing The Long Tail — says that there is still a valuable space for independent ad nets to fill, at least for the moment. D+P posits that the value is available through the Long Tail, which allows ad nets to gather up sites with traffic that was previously too difficult to advertise on or which was otherwise undesirable. In other words, there’s still a lot of web space to advertise on and even Google, not to mention Microsoft (NSDQ: MSFT), Yahoo (NSDQ: YHOO) and AOL (NYSE: TWX), can’t serve it all. (Again, the report reiterates its hedge that this view is not meant to be a long-term industry outlook).

The 15-page report reads like an introduction to ad networks, though it does make a few points worth mulling over:

The rise of mini-aQuantives: Certain stand-alone players are likely to have bright futures. D+P expects indies like Tribal Fusion and Casale to continue to generate cash by using their platforms to roll up small rivals and niche specialists into


Comments have been disabled for this post