*** New report forecasts major growth for 2005 and beyond; ad networks generated £41.7m of ad revenues in 2004, to rise to £57.1m in 2005. CPM rates as low as £1; vendors bullish. ***

London, 16 August 2005: A new report compiled by internet marketing publisher E-consultancy has found that almost one in five online display ads were placed via an online advertising network in 2004. The research is featured in E-consultancy’s Online Advertising Networks – A Buyer’s Guide, the first report of its kind for the UK market.

*** What is an ad network? ***

Ad networks offer greater reach for less outlay: they help publishers sell unused inventory, while allowing advertisers to buy ads across multiple sites at discounted rates.

*** How is the market evolving? ***

E-consultancy discovered that the value of the online ad networks sector in 2004 was £41.7m, based on feedback from the networks themselves. This represents 18% of the IAB’s 2004 market valuation for online display ads (£232.9m).

Significant double-digit growth is anticipated for 2005, as the internet marketing sector becomes au fait with the benefits of ad networks.

The consensus view is that online advertising networks will increase revenues by 37% in 2005, to £57.1m. This should outpace growth in online display advertising, which E-consultancy estimates at 32% for 2005.

*** What do ad networks charge for online advertising? ***

Ad networks were found to charge between £1 and £4 for a ‘run of network’ standard display ad buy, or up to £10 if ads are targeted.

For pop-ups and pop-unders the rate increases to between £5 and £20 CPM, while rich media can command rates of up to £30 CPM.

“Online advertising networks are claiming an ever-larger slice of online marketing spend,” said E-consultancy CEO Ashley Friedlein.

“Many advertisers might not be too familiar with the benefits offered by networks. We hope that this report will help educate the market. There is a large capability for sustained growth in the future.”

The buyer’s guide features in-depth vendor profiles to help publishers and advertisers choose the right network. It also includes a SWOT analysis to help persuade the boss, as well as detailed market research and quotes from industry heavyweights.

Networks profiled: Accelerator-Media, ad 2-one, ad pepper, AdLINK, Adsmart, Advertising.com, Adviva, Aura Sports, dgm, eType, MediaBrokers, Migration Marketing and 24/7 Real Media.

The report can be downloaded from:
http://www.e-consultancy.com/publications/online-advertising-networks-buyers-guide-2005/

Journalists and bloggers can find out more by contacting E-consultancy editor Chris Lake.

e: chris@e-consultancy.com t: 0207 6814052.

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About E-consultancy
http://www.e-consultancy.com/about/

E-consultancy is the UK's leading online publisher of best practice internet marketing reports, research and how-to guides. It also publishes buyer's guides and has a directory of 100,000+ third party internet marketing white papers.

Since moving to a paid-content model in 2003 E-consultancy has amassed thousands of paying subscribers, around 30,000 registered users and 115,000 unique users sessions per month. Its weekly newsletter is sent to 18,000 e-marketing professionals. Subscribers pay from £99 per year to access the exclusive and highly practical content, which helps internet marketers get the most out of their websites.

E-consultancy events include roundtables and monthly 'Supplier Showcases', where six suppliers pitch to an audience of pre-qualified buyers in a Central London venue.

E-consultancy also provides a range of in-house internet training programmes, such as seminars and workshops, and has recently launched a new media jobs channel to help internet teams find new recruits.

Published on: 12:00AM on 16th August 2005