CBS Vows to Stop Using Third Party Ad Nets

CBS hopes to boost ad prices by no longer use third-party ad networks to sell its online inventory. CBS is the largest publisher to make the move to stop using ad networks, which have been called bad for the online ad industry because such networks inundate the internet with cheap ad inventory, which brings down prices.

CBS, which generates 60 million unique visitors a month, will launch its own ad network in order to make it easier for advertisers to purchase by specific demographics or by remnant display ads across its sites, according to AdAge.

Time Inc. is one publisher that has been moving away from using online ad networks over the last year. Currently it only works with Ad.com. Time Inc. has also launched its own internal ad network.

Time Warner’s Turner Networks has completely cut off use of third-party ad networks, as has the Gawker Media blog network, writes All Things Digital.

Neil Ashe, CBS Interactive CEO, says CBS is “prepared to take a step back on revenue if we have to, but over time we will monetize at a much better rate than ad networks do.”

Mike Cassidy, CEO of Undertone Networks, says the removal of CBS inventory from the ad network market is “not that big a deal,” and that it doesn’t move the market. What will have an impact is if Yahoo follows through on its threat to kick networks that don’t add value with data or advanced targeting off its Right Media exchange, he says.