Sifting Through the Hype of Ad Networks

Ad networks are all the gossip with their impressive promises: extensive reach, pinpoint targeting, and returns that are supposed to make marketers' hearts race. More budgets, higher bids, better performance! (Hhmmmm… I think not)

But do they really deliver on these promises? For a guy who has been in the industry for years, I thought it was time to hit the keyboard and share my thoughts - after speaking to many different ad networks, on behalf of our clients.

Let's strip away the lipstick and examine the facts.

The Reach Dilemma

The promise of ad networks is typically billions of impressions, your brand omnipresent. Yet, what's the value of such reach if it doesn't connect with the right audience? Or worse, what if it connects with no one at all??

Ad fraud is a growing plague estimated to have cost marketers billions in 2023. This is a great reminder that not all impressions are made of gold. And with concerns looming over data security and privacy, the precision promised by networks often falls under doubt.

Is ROAS a Misleading Metric?

Ad networks love to boast about the returns they can generate. Yet, a high ROAS isn't always indicative of a thriving business. This metric overlooks critical aspects like sales volume and actual conversions. When you're evaluating your ad success, remember to look beyond just the flashy ROAS numbers and dig into what's truly driving your business growth.

CPC is also paraded as the holy grail of cost efficiency. Yet it can be a hollow metric if the traffic from these networks is low in quality. Publishers promoting low CPCs may as well be selling sand in the desert.?

The ‘Broad’ targeting mirage

Broad targeting is often sold as a strategy to cast a wide net, and it's something some networks like Google will initially pitch you, especially if you are new to the advertising world. In reality, it will lead to wasteful spending and minimal engagement. When you target everyone, you may end up engaging no one effectively.?

What about the impact on brand reputation?

Ad networks might place your ads in front of an audience that doesn’t resonate with your brand's message or values. This can not only be ineffective but also alienate your existing customer base. Choose a network that is as serious as you are about your reputation. It never hurts to ask questions, right? I urge you to demand transparency from ad networks. Ask for detailed breakdowns of how ROAS is calculated and insist on understanding the broader picture of campaign performance, including metrics like LTV. Here is a list of questions, you can ask:

1. How Is ROAS being calculated in our campaigns?
2. What metrics are included in your ROAS Calculation?
3. Can you provide a performance breakdown across similar advertisers' campaigns??
4. How are you tracking conversions?
5. How does seasonality affect our ROAS in campaigns?

Cost implications and budget management

Having a big advertising budget doesn't automatically mean you'll get great results, especially if you're being countlessly sold to by Ad Networks promising you the moon. It's easy to fall into this trap of spending loads on broad, unfocused campaigns that just eat up your budget without really hitting your goals.?

The trick is to use your budget smartly, focusing on targeted campaigns that speak to your audience and get you the engagement and conversions you're after, instead of just burning cash on ads that don't really do much.

My final thoughts?

Ad networks with their promises require a cautious approach. Cut through the noise, demanding clarity and substantiated results when engaging with them. A sustainable strategy is rooted in long-term growth and authentic connections with your audience, not just impressive metrics.

They are just one tool in your kit for your advertising and marketing strategies. It's your strategic planning and deep understanding that truly make the difference. Use ad networks wisely, combining their strengths with your unique skills, and you'll see your campaigns really drive performance.