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The Facebook External Ad Network and How to Become an Ad Network

How to

The Facebook External Ad Network and How to Become an Ad Network

Ben Roodman April 30, 2013

Creating an advertising network is a default conclusion to building a proven business model. In industry, reappropriating media types by vertical or by adding a creative agency on top of media can 2-10x the value. Simply aggregate media inventory, commit to selling advertising, and a claim specialty in delivering performance value to advertisers.

To a traditional business, another word for an ad network might be sales. Content creators who normally wouldn’t have the production power to amass an audience on a sustainable scale can broker their advertising value through a network. Most publisher organizations choose to join ad networks to forgo the additional operational overhead of a sales department to monetize all consumer impressions. The ideologue from the user’s perspective is the network’s ability to align the advertiser’s brand values with user’s interactions around content.

No formal introductions are needed to get started, but having a base of strong relationships with agencies who are willing to advertise plus some owned and operated media to use as a testing ground are a couple of firm recommendations. Additionally, BYO impeccable technical skills because being better at bundling than anybody else does not mean added advertiser performance against existing networks. The decision to become an ad network from an existing business extensionally flows the same way eventually all water leads to the ocean.

If Facebook announced plans to relegate its attention to an external ad network, it would signal a paradigm shift in the social contract of the advertising industry. Facebook’s claim is that a user choosing to input personal identifiable information is a monetizable choice to measure all personal interactions across all Facebook integrated platforms. This is a bold statement in terms of strategic thinking and the limitations of existing gaps in market. In other words by Facebook’s Chief Privacy Officer “Everything you do and say on Facebook can be used to serve you ads. Our policy says that we can advertise services to you off of Facebook based on data we have on Facebook.” The same concerns are now being raised around mobile advertising networks and individual smartphone mobile device identifiers, UDIDs.

When you are the platform that individuals use to organize their lives, weighing the power of users to form a strike over improved technology targeting and value-added services to advertisers is a serious conversation. A key part in the search for a repeatable business model is understanding the long term value both on and off facebook, which remains unknown.

Ben Roodman

Benjamin Roodman
Senior Contributing Editor
Benjamin Roodman is an advocate for getting to the truth of what converts in mobile. Well versed in mobile advertising platforms with a notable aptitude and passion for analytics, he's currently putting deals together as head of partnerships at a mobile data startup. Benjamin has previously held Business Development positions at AOL Advertising and helped establish several funded location-based consumer startups.
Follow me on twitter @BRoodman

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