Pay Attention: Net-Neutrality Rules Could Shake Up Online Advertising

[Commentary] At this point, the topic may make your eyes glaze over. But make no mistake: network neutrality is a big deal for that ad business, and in turn, the ad-supported media ecosystem.

The companies that control the last mile of the Internet -- the likes of Comcast and Time Warner Cable -- would like to be able to charge different prices for the use of their pipes into the home. But while the net neutrality debate has focused on companies that provide entertainment or services on the web -- Google, Facebook and Netflix, for example -- it is also significant for marketers that use those pipes to communicate with their customers, like Unilever and P&G.

As the Federal Communications Commission comes closer to setting actual rules that might establish a multi-tiered system of fast lanes and slow lanes, they should be paying attention. If the FCC does allow Internet Service Providers to give speedier data delivery to companies willing to pay for the privilege, the online ad and publishing industries could look a lot different in the not-so-distant future.

Small publishers and small ad tech firms could fall prey to large firms able to pay for fast-tracking. Digital audiences and ad inventory could be redistributed. Publisher revenue models could shift towards more ad-subsidization or more subscription offerings. It might take a lot longer to load a video ad than the page content around it, or vice versa depending on who pays for better service. And new competition in today's commoditized programmatic ad sector could become reality.

"Pricing will go up for access from a marketing perspective in terms of CPMs," suggested Joe Apprendi, founder and CEO of ad-buying firm Collective and a digital ad industry vet. If a multi-tiered system forces more publishers away from ads to subscriptions, he said, that's also bad for marketers.