HealthContentAdvisors

Vertical Ad Networks Still in Experimental Phase

• Posted April 17th 2008
• by Janice

The Health Central Network (THCN) and IAC’s Advertising Sales (IAC/AS) group announced the launch of a new health advertising network this week. THCN owns and operates a collection of healthcare-focused websites, with a core collection of disease-specific sites such as My Migraine Connection and My Allergy Network, which were either acquired or built. Owning the sites gives THCN the ability to impose common standards, tools, and interoperability among the sites and unites them under a single strong brand that appeals to advertisers that want to reach consumers who are seeking information about disease management and healthcare.

Health Central’s new agreement with IAC/AS now provides them with a strong vertical ad network in addition to substantial ad sales resources for serving the pharmaceutical industry. Furthermore, the relationship between IAC and THCN goes well beyond this cooperative ad network. IAC made a significant minority investment in THCN in January, which PaidContent.org has reported at $50 million.

Glam Media competes with THCN/IAC for the same pharmaceutical and health-related consumer product ad dollars, but with a different vertical ad network model. Glam, which raised an additional $85 million in February, has also assembled a substantial collection of related websites that in the aggregate attract tens of millions of visitors per month.  While THCN’s content is medically-focused, Glam’s network of sites is weighted more toward entertainment and lifestyle. But the key difference is that Glam does not own or operate most of the sites in their network. Instead they offer a range of advertising and marketing services to the affiliated publishers.

As the Web develops into a more mainstream advertising and marketing medium, both of these experiments bear watching. Advertisers and marketers will likely try out both, and success will go to whichever produces the best results.