NEWS: Disney's SoapNet Expands Reach

Memo To SoapNet: An Ad Network Won't Save You

from Silicon Alley Insider by Michael Learmonth

Disney's (DIS) SoapNet probably won't be the last troubled Web site to try to save itself by building an ad network, but it's clear a shakeout is coming. But the vast majority of these so-called networks won't have enough scale in their niche to compete on sheer numbers, or enough quality inventory to attract advertisers willing to pay a premium.

The WSJ notes traffic to SoapNet and ABC Daytime cratered in March, down 24% to 1.2 million unique visitors in March, according to comScore. SoapNet's gambit: Try to double its reach by rolling up another 45 sites, suc as BeautifulStranger.TV and Stylehive.com, and selling them as a group.

The problem: The WSJ estimates there are 300 ad networks out there, but only a slice of the top-10 in scale and then the leaders in various niches. More to the point: the women's ad network space is already crowded with networks such as Glam Media, NBC's iVillage-based "virtual women's network," Viacom's ParentsConnect, and even CondeNet. Ad buyers say the the last thing they need is another network to come calling.