David Nelson, co-founder and CEO at Limelight Inc. praises the multifaceted expertise of ad networks in managing the omni-chaos of today’s programmatic space, and offers one critical piece of advice
Ad networks, like most of the rest of us, live in a world in which they don’t necessarily make the rules. But when Google deprecates – and then reprieves – third-party cookies; or when new digital channels, new laws and powerful new technology deliver a steady stream of new realities for the adtech industry – ad networks are the ones whose adaptability and ingenuity allow the programmatic ad business to keep on rolling.
As a platform that works with ad networks to help them build their own programmatic businesses, we know very well the work they do and the wild climate in which they now operate. Indeed, our second annual white paper focusing on the ad network space identifies a bracing set of challenges for ad networks, as well as an outline of how they are contending with them.
Rapidly changing privacy regulations and uncertain identity models, for example, leave publishers and advertisers obliged to plan for old and new scenarios simultaneously, and ad networks must be vital partners in that exercise. Meanwhile, new regulation, channel diversification and effective AI use are also high on the agenda – and again, ad networks need to have the answers if they are to do justice to their clients.
So as 2025 turns into 2026, one quality stands out as the ultimate competitive advantage for ad networks seeking to protect the business of the publishers they serve: independence. That doesn’t just mean independence from unpredictable platforms such as Google and Meta, but independence from opaque supply paths, inconsistent margins and intermediaries that dictate how inventory is bought and priced.
Ad networks can no longer afford to follow one approach and spacialise – they need to cover an unprecedented number of bases. In our white paper, we take a look at a few of the key positions smart ad networks are taking in today’s programmatic world.
Transparency and flexibility in a shifting landscape
With Google’s ambition of third-party cookie deprecation now abandoned, uncertainty in the industry abounds. As a result, publishers and advertisers continue to use cookie-based setups whilst also exploring new identity frameworks.
At the same time, new laws such as the UK’s Digital Markets Act (DMA) and antitrust activity in the US are leading to structural changes in the ad tech industry as authorities demand more transparency of supply chains, data governance and cross-platform competition.
For ad networks, therefore, it is important to support several identity models so they can provide buyers with clear insight into where impressions are coming from and how they are measured. And they also need to offer publishers transparency, revenue safeguards and data strategy support as identity frameworks and future regulation hang in the balance.
The strategic role of ad networks in the supply ecosystem
Publishers are faced with reduced margins as prices fall in the open auction, while fraud, MFA inventory and unnecessary intermediaries further diminish value.
Simultaneously, demand is fragmented due to signal loss and ID restrictions. This means that an even smaller number of buyers have access to high-quality audiences.
Publishers are seeking to regain control, building their own data assets, cultivating direct relationships and curated marketplaces, and working hard to protect revenue and reach.
The ad networks who work with them need to package supply and simplify complexity for buyers if they are to build trust among clients and strengthen their own businesses. They are shifting from volume-based arbitrage to function as curators – imposing standards on supply quality, controlling the economics and providing a safe, authenticated environment for buyers.
The channel challenge
Digital now covers an increasingly broad array of channels. Over recent years, CTV ad spend has crossed over tens of billions of dollars in the US alone, while both DOOH and audio continue to gain momentum, with forecasts of programmatic spend expected to reach US$2.2 billion and US$2.3 billion respectively.
Ad networks that provide cross-channel packages deliver substantial value to advertisers. This includes providing standardised KPIs so that buyers can compare across channels and allocate budget depending on campaign objectives, whether that’s attention or reach.
The best AI model
AI integration into platforms is now commonplace, with benefits ranging from automating campaign optimisations and audience prediction to creative production, forecasting and real-time measurement. However, to function effectively AI requires reliable data, clear objectives and human involvement.
Needless to say, ad networks need to lead the line in introducing AI best-practice to the programmatic space. The best of these are finding that AI integration works best with a hybrid execution, with AI taking care of scale and speed, while humans determine intent, context and standards. In this way, both efficiency and performance can advance together.
What is the future for ad networks?
Given the array of complex and conflicting challenges, ad networks that can provide transparency, safeguard publisher revenue, align with first-party data strategies, curate demand, harness AI and support the diverse range of digital channels will fare best.
Of course, that’s a long list, which is why ad networks in turn need to work with partners that provide the necessary tools and insights.
For an ad network, the right partner isn’t one that competes with them, hides fees or maintains control but one whose growth is linked to theirs, ensuring there is no conflict of interest or ulterior motive.
Choosing the right programmatic partner is an art in itself, and one on which we are happy to advise. It may just be the factor that determines whether an ad network can conquer the mountain of challenges it faces in our demanding programmatic market.
