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April 3, 2000

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Once you have decided to invest in an Internet ad management solution, the question arises: how can I choose the best solution for my needs without jeopardizing the privacy of my site's visitors? Even more importantly, how can you find a solution that your organization and equipment can support and maintain as your site traffic and customer size continues to grow?

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In order to answer these questions you will need to look at a number of factors, the first of which is scalability. Scalability refers to the ability of the software to grow and handle increased ad impressions and campaign inventory without requiring additional hardware. This is one of the most important factors in the successful long-term use of any ad serving solution.

If you expect that your business will grow, (and you must, otherwise you would not be in business) you have to assume that your site traffic and ad campaign inventory will increase as well. As a result, your ad serving solution should be scalable enough to handle 1 million impressions today and 1 billion tomorrow, should that need arise.

Along the same lines, the ad serving solution should be able to manage spikes in your site traffic due to unforeseen factors such as major news events or new product releases. Some ad serving solutions and third-party serving solutions are limited in the number of impressions each software license can handle. As a result, problems such as delays in ad delivery and reporting can occur. Also, some solutions require additional hardware to support them and any additional licenses. Due to their design structure, these additional machines and licenses cannot communicate quickly, or at all, which causes further delays in ad delivery and reporting.

Another related concern is the platform compatibility of the software. Some solutions can only work on specific platforms and configurations. As a result of the platform's limitations, further problems can occur in terms of system performance. And if you are not currently running your site on the same platform, you would have to invest in a new server platform and possibly additional hardware to support it.

Thus, the total cost of ownership for your ad serving/management solution not only involves the cost of the solution itself, but also the cost of any additional hardware and software, such as servers and platform software to support the solution. In addition, due to the architecture of some software solutions, staffing, trafficking, and technical people can become a burden as well. The key is to find a system that is simple enough to be supported by your staff and within your current network while still offering the scalability to grow with the robust targeting and reporting capabilities that your customers demand. It must do all of this within the constraints of your budget.

Once you have found a solution or solutions that you can afford to support, you must make sure it delivers the functionality and features your business demands. What kind of profiling and targeting capabilities does it offer? What kind of reporting capabilities does it provide? And most importantly, will it allow you to leverage data about your audience without sacrificing the privacy of your site's visitors? Considering the current climate within the industry, this point is more important than ever.

This is one area in which most third-party serving solutions and networks take advantage of their customers. Beware! Many third-party servers actually charge a premium for their services if you want to keep them from accessing your customer data. In other words, they want to profile your visitors, deliver your ads and then maintain their own files of demographic data they gather from your Web site. Thus, you are sacrificing your control over your customer data and jeopardizing your visitors' privacy.

The final point is that while searching for the best ad serving/management solution for your business, you should look at what other sites in your segment are utilizing. What is the standard? If there is one solution that most sites are using, talk to one of your peers and see what they are using, how are they supporting it, and how does it compare with what you are looking for. By doing this, you will be able to get direct feedback on most of the points that we have covered, and at the same time answer any other questions you might have.

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Article by Sebastian Pistritto, Vice-President of Technology Marketing of Real Media, Inc.. Sebastian holds a B.S. in Electrical Engineering from the University of Delaware and a B.S. in Business Management from Wilmington College. In his role as the Vice-President of Technology Marketing, Sebastian oversees all of the marketing and sales support efforts for the technology business, focusing primarily upon the positioning and branding of Real Media's Open AdStream product line.

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