In summary I took away a few key points, for anyone buying banners:
Premium Direct Sales Publishers have about a 10% share of total impressions but have about a 75% share of $. Non-Premium or ad networks, and non direct buys have almost 90% share of all impressions, but only account for roughly 25% of the total spend.
Premium Publishers on average charge $12-18 CPM whereas Ad Networks are charging on average $1 as their CPM.
Maybe this is why use of ad networks has increased dramatically, from 5% of sold inventory in 2006 all the way up to 30% in 2007!!
I know the best way to advertise in premium content on premium sites is to buy direct, but I had no idea the amount of inventory that was being sold to Ad networks. I think as these networks grow, the amount of hyper targeting advertisers that will be possible will grow dramatically. No longer will I have to settle on telling clients "Your ads will appear on sites such as". We may be able to say "You will be on these sites, in these positions, found in these sections!"
The growth in marketer use of ad networks will likely lead to the erosion of premium CPM's if publishers maintain the behavior of selling their inventory at rates 10x higher than networks.
It all makes sense that the growth of inventory being sold via ad networks is growing at such an incredible rate. Publishers keep adding content (more ad inventory) but their content building is outpacing their direct sales of ad inventory.
Here is a link to the Bain/IAB study I summarized.
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