Link: The Market Forces Killing Display Advertising

Someone just pointed me to Jonathan Mendez’ great blog post “The Market Forces Killing Display Advertising“.

Obviously we’re not in display, but a bunch of what he writes about resonates for us.

A couple notable things about this post:

  • He talks about the “buy side” and “sell side” of the market, something we haven’t seen enough of and something we talked a lot about when we were out pitching for funding.
  • He uses the word vigorish. Awesome. Publishers should get their (fair) cut.
  • He does some simple models to identify that publishers are being underpaid for the value they’re driving.
  • He talks about fragmentation among publishers as a key source of weakness.

Although he’s talking about display, I think a lot of his insights apply to us. The market is ripe.

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ABOUT VIGLINK

By identifying commercial products mentioned within a publisher’s content, VigLink automatically invigorates those terms by transforming them into revenue generating hyperlinks whose destinations are determined in real-time, advertiser-bid auctions.