Think the Google/Microsoft/Yahoo triad has the game locked up? Think again. Find out why a major alternative could be just around the corner.

IAC just launched a new ad network featuring some special audience targeting technology. The news drew praise from some of the press and sharp criticism from others.

Silicon Alley Insider lauded the move, as did CNET and Ad Age. At the same time, other outlets blasted the decision, accusing IAC of slapping fresh paint on the old IAC Advertising Solutions.

As a former IAC employee, what do I think? Can IAC really be a big player in the ad network space? Can they become an ad network that advertisers and brands must buy on? Can they become as essential to advertisers’ online media plans as Google? The short answer is YES. Here’s how.

The whole is greater than the sum of its parts
First, if IAC is really going to make a go of it, then they have to stop acting like a holding company. IAC must start running the show by dictating downward to the fiefdoms instead of letting the warlords of the individual companies rule the roost. IAC can be one of the few viable threats to the Google/Microsoft/Yahoo triumvirate, if they have the stomach for it. They have the products, technologies and audience. But singular operating goals of each individual company will always take precedence over true integration unless the bigger picture outweighs each brand’s need.

We are starting to see signs of this with the announcement of IAC splitting into five divisions along vertical product lines. That decision will allow for a much smoother ad operation over time. By way of example, just imagine the internal challenges IAC faces in the current structure when it comes to creating something like a universal privacy policy for all of its companies. Essentially, it can’t be done in an effective manner that serves the individual companies, consumers or IAC. The split up of IAC will greatly facilitate innovations because it will allow the spinoff companies to move with the flexibility required to execute on their specific business models. Think of it as creating five more nimble speed boats out of what was once an unwieldy oil tanker.

Of course, that process will take some time. So what does IAC do in the interim? Set the groundwork.

“Audience Cubes” — the segmentation of the company’s massive audience –is only the beginning. If you do not think that IAC is going to shake things up over the next couple years, then you don’t know Barry Diller. Regardless of what you may think of Diller, he is nothing if not brilliant. Trust me. He constructed an online media empire in IAC that is currently the only credible threat to the better known media juggernauts ahead of him. Everyone knows the brands: Match.com, Citysearch, Ticketmaster, LendingTree, Ask.com, Evite, HSN, and the list goes on for another 50 companies.

So what are the next steps for the IAC ad network? What should they do? If this was the first step, then what would they have to do for the IAC ad network to rule the roost with brands and consumers? Just two things.

A two-part plan

1. Buy an existing ad network

The IAC media properties are great, but most brands and agencies want to simplify their buys. The more distribution options, the better the offering. Imagine an ad network that you could buy that had the benefits in pricing of an ad network and the ability to exclusively access those well-known online brands.

So which ad network should IAC buy? Specific Media is the one that I would go after. I have worked with more than 40 different ad networks, and they are not all created equally. The quality of the staff, the technology, etc. vary greatly. You have to find someone who has worked with all of your contenders. What they promise, and what they can deliver, vary greatly. You have to go after an ad network that has higher quality sites in its network to complement the IAC properties. Buying an ad network gives you access to the expertise, both in terms of technology and ad sales. IAC Ad Solutions isn’t currently an ad network as much as it is a grouping of disparate sites cobbled together haphazardly. Specific Media is one of the best. Now, can Diller afford it?

2. Use search data

IAC has one of the biggest advantages over any ad network out there. Why? Well, they own Ask.com — a treasure trove of more than 25 million users a month. These are topical keyword searches and specific keyword searches. And those users go all over the web, hence the need to expand beyond just IAC properties and purchase an ad network.

Imagine targeting anyone who typed in “mortgage” across the internet for display. Imagine what agencies and advertisers would do to translate their SEM buys into actionable display campaigns. It is a veritable gold mine.

But what about privacy? Ahhh… to hell with privacy. You all know it’s an illusion anyway, right? Privacy is a red herring, a canard. The truth is the credit card companies know what you buy, the DVD store knows what you rent and TiVo tracks you in four-second intervals. What do you think the potential is for that data?

The truth is your name has been sold more times than you can count. Privacy? Just accept that you don’t have any. Look, I support privacy efforts from the consumer end when it affects important issues like healthcare. But consumption behaviors? Please.

The reality is that IAC offers some of the best privacy against this in the world. Ask.com has a product, AskEraser, that will anonymize your searching on Ask.com. You don’t want to be tracked or used for those purposes, just press a button. One button.

Don’t count IAC out
Those two steps may be a tall order but it would put IAC back in the big game. They have already consolidated their systems on Atlas, the groundwork is set. Audience Cubes may be slapping fresh paint on the car and adding cool rims, but they may end up being much more powerful in the long run than you think. IAC has the potential to really challenge the infrastructure of online advertising, if its reorganization is done right. They have the brands, and they have Barry Diller, and I bet he has a few more tricks left up his sleeve.

ranty rant signing off…