Online trends predict power shift to targeted networks

News from Razorfish’s marketing specialists suggests that agencies are increasingly looking outside of portals to vertical networks for better depth and breadth.  By the end of 2008, portal prices had fallen drastically, but this price drop is unlikely to supersede the attractiveness of targeted networks like NPM.  In the past year, Razorfish reports that it cut its site-specific buying by 50 percent and increased its spend with smaller, niche networks.

Razorfish VP Sarah Baehr contends that in the economic downturn, the online ad industry is a buyer’s market.  It’s up to portals, direct-sell sites, and vertical networks to duke it out in hopes of attracting ad dollars.  What makes one option more attractive than the others?  For example, NPM and other’s premium inventory, conversational marketing, brand integration, and various custom platforms make targeted networks stretch the ad dollar farther.  

Baehr adds that performance is key.  As clients slash ad spending, agencies are “going to look at the top performers and maximize those opportunities first.”  Tapping into social media’s explosion wouldn’t hurt, either.  Executives are realizing social media’s potential impact on their brands, and looking for ad solutions that offer them a wide variety of valuable messaging. 

Sources: MediaPost Publications; ClickZ