Ad Networks: Flight to Quality ?

I had conversations with several of the top 10 ad networks this week, and the overall takeaway was that their business continues to grow, in some cases, at an accelerated pace. One of them mentioned that the rate of new customer acquisition had actually gone up, with more advertisers willing to give ad networks a chance.

Is this a flight to quality with the top tier networks gaining at the expense of smaller networks ? Or is there a broader shift from premium publishers to more cost effective inventory (i.e. ad networks) ? Or is there just a phase delay, with the top tier networks about to feel the pain next quarter ?

About Ashu

General Partner with Foundation Capital. Areas of interest range from digital media, mobile and internet infrastructure to all things related to India. Currently on the board of TreeHouse, Aspire, Conviva, Agni and TubeMogul.
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