Models
Digital Media Ad Network Business Models
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Excerpt: (Abhishek Uppal, Piper Jaffray Investment Banking; Reference to The User Revolution)The ad networks typically take on one of three business models: dynamic network, the traditional ad-network, and ad representation.Dynamic Network ModelUnder this model, the ad network will buy inventory from the publisher¡¯s sites in advance at a specified rate, group the inventory and select the best types for each advertiser, and resell the inventory to an advertiser or agency at a higher price. Given that there are no assurances this inventory can be resold or resold at a profit, this model presents the most risk for the ad network. The…
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