With $1 million in funding, BrightRoll (formerly PostRoller) has launched and is seeking to carve out a niche of contextual ad serving by making use of networks of various sites. While this is not particularly a new concept (see BlipTV or Streetfire or Magnify), BrightRoll has attracted huge media players such as MetaCafe.
The main question for BrightRoll and the others in this vertical is… what about Google? We know contextual Adsense ads are coming from Google in the YouTube and Google Video platforms, and that will set an industry standard in terms of relevancy and performance metrics. Will these competitors have time to line up major players before Google formally enters the market?
BrightRoll takes 50 percent of the ad revenue, but charges less depending on volume. He’ll never compete with a Valueclick, or sell ads to CNN. However, Sacerdoti said he wants to sign up networks of sites, so that he can run a relevant advertisement across, say 25 entertainment sites. The trick is getting a large enough network to make this pay.
Alan Rimm-Kaufman is a brilliant analyst (even has a PhD in Operations Research and Statistics and is a fellow Yalie… boolah boolah). However, I disagree with my fellow bulldog on some of the conclusions he makes about Google’s expanded search algo’s. I see those algo’s rapidly using the AI tech that Google has been developing for years to tack ahead and flank abusers and potential cpc issues of reporting. That AI (expanded match as Google defined it) allows for the AdSense platform to attempt to stay one click ahead of the frauders (admittedly, not always the case as Wayne Porter could certainly point out). But to dismiss the new results as mostly non-relevant ad serving based on a few observations seems premature. Google, more than ANY marketer, is concerned with relevancy, in my opinion (contextual, wiki’s, blogs, merchant process through Checkout, Docs, YouTube, possibly radio). I think Google has a good eye to the long term because of this concern on relevancy. Read Kaufman’s insightful piece and let me know what you think…
I think Google’s revenue maximizing algorithms have discovered that the combination of “extended match” and quality-score based auctions means they can pretty much serve any ad you have on any search related to your category. The result? Higher cpcs, less traffic because of the less targeted copy, and lower conversion rates because the landing pages are wrong: a perfect storm for advertisers, degraded results for users, but more short-term revenue for Google.
ValueClick continues to draw attention for its higher than expected earnings last quarter. It’s shares have jumped more than 15% already. When will the VC’s start coming and will a bigger fish be making a move soon? Too early to tell, but we’ll keep our eyes open…
Not in the betting mood on the market, but I am definately adding some ValueClick to the portfolio tomorrow.
An amazing breakout to all-time highs. In reading about the business, I am amazed no one has made a play for them and emailed a smart friend just that this afternoon.
Value Click continues to benefit from a continued fragmentation of online media media consumption.
Content king/queen/monarch MarketingSherpa has been acquired and I can’t say enough about Anne’s hard work in making this happen. The MarketingSherpa team is a class act and has always been (and will continue to be, I’m sure) a great resource for those in online marketing or affiliate marketing. With over 200,000 readers and 700 case studies, the Sherpa is poised to elevate itself even further…
Anyway, enough gushing. I’m happy to hear they’ve been acquired by yet another class act in MEC labs. Congrats to Anne and all my other friends at MS! Official release here.
MarketingSherpa Gets Acquired By MEC Labs Group – ReveNews – Jim Kukral, Online Revenue News & Opinions Since 1998
Mashups have revolutionized the social web by freeing up access to services and allowing publishers to have a stake and claim in the chain of interaction with a merchant besides just passing on eyeballs or qualified leads. It’s inevitable that CPA affiliates begin to use mashups. SuperAff.com has a nice post today on the subject…
The technical side to this is above my capabilities atm, but I can definitely see what an important tool this can be for Affiliate Marketers.
Google continues to up the ante in the publisher/advertiser relationship, and their newest project is yet another flanking move aimed at tightening the grip on the otherwise unruly online advertising market. This transcends CPC and heads straight into the backend of the CPA crowd. The only question is, will Google continue to innovate/renovate in this space or will they buy a network? Thanks to Jeff Molander for the find…
Called the Google Website Optimizer, the new hosted service is designed to let Web site operators do A/B and multivariate testing on the pages that their sponsored listings drive traffic, to see how various headlines, ad copy, product descriptions and images lead customers to convert. Google is partnering with Web analytics consultants EpikOne and Optimost for the service, which went into a public (but invitation-only) beta test on October 18.
Gibbs brings more than seven years of online advertising experience to this role. Immediately prior to Revenue Science, Gibbs held the position of director of strategic national accounts at ValueClick Media where her responsibilities included establishing relationships with large brand and top online marketers. Previous to her position with ValueClick, she served as vice president of sales for Fastclick.com. Gibbs has also held various senior sales roles at WebSideStory, a leading web analytics company and pre-IPO ValueClick, Inc. Gibbs holds a bachelor’s degree in accounting from Florida State University.
Every week on the Weekly Insight Podcast we seem to ask each other if ValueClick is really going to sell CJ. I’m of the constant opinion that no, they will not sell CJ (really, who would sell a two letter domain name these days??). If Google is looking to buy a CPA network they would look elsewhere for a better platform in terms of long term value besides just locked-in merchants (or a better name… maybe one that rhymes with Google?). Interesting earning notes from ValueClick, nonetheless. The earnings call can be heard here on tomorrow (Wednesday November 1).
ValueClick Inc. reports earnings for the fiscal second quarter Wednesday after the market closes. Shares of digital marketing services company ValueClick fell with the rest of the online advertising sector in September after Yahoo Inc. said a slowdown in automotive and financial services ad spending would weigh on its third-quarter results. STOCK PERFORMANCE: Shares of ValueClick rose 20 percent during the quarter, ending September at $18.34 on the Nasdaq. In the past 52 weeks, the company’s stock has traded between $13.15 and $20.98.
No one or their sister is talking about clickfraud. Sure, AdSense might be the most incredible ad platform ever, but at what cost? What are we in the CPA Network side of things doing to combat the eventual governmental/regulatory and public scrutiny that will inevitably be a result of a glossed-over clickfraud problem in online marketing?? Wayne Porter suggests a potential network with an eye on the prize, but are they taking the right step or are they interested in hopping on the “we have a solution for clickfraud that Google isn’t acknowledging” bandwagon without really offering any solution at all? At any rate, we should all pay attention when Porter addresses the issue of networks taking on clickfraud or spybots…
Think Partnership is going to launch ‘ValidClick Advertising Network’, a click-fraud solution, a network of 1000+ sites that boast proprietary clickfraud mechanisms, at the 10th annual ad:tech New York interactive marketing conference and expo. ad:tech New York is going to be held from November 6 to November 8 at the New York Hilton. We will see them showcase Kowabunga, Secondbite and MarketSmart (competing with Google’s grand plans?).
THK- Starts to Think, Shares no longer Sink – ReveNews – Wayne Porter: Greynets, Malware, Adware & Spyware Research- E-commerce, Online Revenue News & Opinions Since 1998
Is Rosenweig correct in his assumption that the market is changing back from a seller’s market to a buyer favored space? I don’t think we’ve hit that point in inventory just yet, but even in the CPA world, this market shift will definitely occur again. This would also supply more reason that Google and other large firms with a good deal of inventory are looking to the world of CPA in hopes of backing out into a favorable effective CPM.
According to Yahoo! COO Dan Rosensweig, a “glut” of cheap ad space was partly to blame for his company’s sagging third-quarter ad revenue, reports Adweek, by way of Yahoo News.
The increase in cheap ad space appears driven by the recent popularity of social networks like MySpace and YouTube. In September, MySpace drove more than 35.7 billion impressions according to Nielsen//NetRatings. Despite the boost in impressions, the metrics company reported that unique visitors to MySpace dropped 4 percent.
In the ad networks space, providers are reporting double-digit gains in ad inventory. According to comScore Media Metrix, ValueClick’s reach is up 11 percent in the past six months and BlueLithium’s 22 percent.
“This is going to change the market dynamics,” says Dan Rosensweig, Yahoo! Inc. COO.