For large content publishers online it is important to be able to turn all their traffic into a steady stream of revenue so they can stay in business. For most publishers this means turning to Google or another large network to get the advertisers they need. Of course, this also means that Google is going to take a significant cut out of the ad dollars, which puts some serious limitations on how much money can be made.
It seems that four of the larger online publishers are tired of losing out on the money, so they have taken steps to form their own programmatic ad network. The network will provide premium brands with the ability to target their massive audience directly.
The companies involved are CNN, the Financial Times, Reuters and The Guardian. Together they reach 110 million online readers around the world. Their new ad network is being dubbed “Pangaea Alliance” and will likely prove to be very successful for these companies.
Tim Gentry, who is the Global Revenue Director of Guardian News & Media said, “Pangaea’s uniqueness lies in the quality of its partners. We know that trust is the biggest driver of brand advocacy, so we have come together to scale the benefits of advertising within trusted media environments.”
They will launch in beta this April, and will begin as a standalone product.
There is no word of whether they will be taking on additional online publishers in the future, though if it is successful, it seems very likely.
This may be the beginning of a trend where multiple online publishers with similar audiences can team up to form their own ‘mini ad network.’ The software is out there to run this type of network, and it could potentially provide a major opportunity to increase ad revenue for a variety of companies. I would not be surprised to see the creation of private ad networks like this become a major business for a savvy entrepreneur.
