Ed: Classic problems.
- Over-stated reach - perhaps by 10 fold
- Non-unique product - everyone offers banners and text ads
- Marginal brands on the global Internet
- Anecdotal targeting that does not scale
IAC To Bind Spin-off Companies In Ad Network
The old InterActive Corp. (IACI), soon be broken up into five companies, is staying together in at least one respect: They'll be bound togther via an ad network. IAC says ad inventory across the five companies -- the "new IAC", Interval International, HSN, TicketMaster and LendingTree -- will be sold together as part of a network after the breakup. The network will be managed by IAC Advertising Solutions president Rich Stalzer, who told AdAge inventory across the sites reach 57 million unique visitors a month.
What's IAC's play? Separating their collective audience into nine "cubes": young people 18-34, men, women, "affluents," parents, active shoppers, active travelers, homeowners, and sports fans. The network could target those that researched high-end restaurants on CitySearch, declared six-figure incomes on Match.com, or searched for an expensive home on RealEstate.com. Sounds great. And sounds like another niche ad network, one of an estimated 400 now clamoring for advertiser attention...
Diller Fashions IAC Ad Network
Bands Together Targeted Audience Segments in Bid to Lift $216 Million Ad Revenue
NEW YORK (AdAge.com) -- A high percentage of ad revenue from Barry Diller's IAC comes from a small percentage of inventory, leaving the bulk of it to be outsourced to aggregator ad networks. IAC could earn $1 or $1.50 per thousand on that outsourced inventory, but what the company really wants is to charge advertisers such as Lexus $6 or $7 CPMs to reach the deep-pocketed users who rely on its 63 companies such as Ticketmaster, HSN and time-share travel business Interval International...
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