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There are probably more than 300 ad networks up and running and they aren’t differentiated on technology. It’s all about arbitrage; they buy inventory for a low price and sell it for a higher price and add little value in between. I think there will be real shakeup in that business over the next year. In a downturn, it becomes imperative for people to become more efficient, and in an efficient marketplace, I don’t think there is room for these players. I’d guess that dozens and dozens of ad networks won’t make it through the next year.”
– Jeff Lanctot, chief strategy officer for Microsoft’s interactive agency, Razorfish, expects 2009 to be an ugly year for ad networks.
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