
What if the popularity of your social website was so extreme that you had more companies than you could handle begging to advertise on your site? I guess you could just launch your own ad network, like LinkedIn.com just did. The social network with a supposed 27 million registered users (who all just happen to be business professionals), has partnered with Collective Media to create the “LinkedIn Audience Network.” LinkedIn has a valuable audience, and is now willing to sell access to it.
The new network will allow websites to apply as partners. Once approved, qualifying sites will have access to LinkedIn profile information that will allow them to better pursue specific groups of users to target. Nothing too personal – just the industry you belong to, company size, location, number of connections, etc. Serious identifying information, such as names will be deleted. Users will be tracked by a cookie on their computers, which will be used to identify them when they visit partnering sites. Through this information, ad network partners will be able to make more relevant offers to consumers. Sounds invasive? Could be, but there is availability for users to opt out of the program completely, if desired.
LinkedIn currently sell ads on its own site and does very well, with display ads starting at $30 CPMs (cost per thousand impressions) up to $76.50, and now will profit from partners’ sites in addition to this. It is said that the ad network will more than likely include the site’s existing partners like the New York Times, BusinessWeek and CNBC and many more companies are expected to join as well.
LinkedIn isn’t alone in this type of endeavor- MTV Networks has expanded its Web presence by building ad networks they refer to as “Tribes.” MTV.com is making deals with other sites that share similar audiences to create online communities, the basis of an “advertising Tribe.” This follows a growing trend across the Internet where companies use a site’s targeted audience and present it as an ad network, all in hopes of gaining larger profits for everyone. Keep in mind though the revenue has to be split between all parties involved.