State of online advertising software Market

Present-day online advertising market quickly develops, partially – at the expense of traditional offline media, making up only in USA about 10 billions US dollars this year 2006. However, the market is based on only one dominating advertising model – contextual advertising in huge homogeneous networks (the brilliant example as well as the founder and undoubted leader of trend of contextual ad model is Google AdSence). But, mentioned model has a range of essential imperfections, giving rise to the demand for fundamentally different approaches. Among imperfections some essential once could be underscored:
1) contextual targeting do not ensure precise results, while alternative ad models either don’t developed properly or still don’t developed at all
2) publishers practically have no ways of working with advertisers directly (in other words – to sell ad events at higher prices)
3) lack of up-to-date advertising formats, for example Rich-media
4) absence of exchange mechanisms highly demanded by users interested in converting provided ad events into promotion of it’s own resources/services
5) poor ad activity control level – both for publishers and advertisers.

In the upshot, such systems couldn’t meet the needs of different customer’s segments: ad network managers, media platforms and online media agencies oriented on direct work with advertisers and publishers. These customers are forced to work with different server installations which turn out to be prohibitive for small market operators and to be a problem for large operators, mostly when it comes to functionality improvement.