hey jason, thanks for the response. Do you think this still applies even if I'm not looking to grow this into a huge network? and instead just want to set up a private invite only type? I'd hope to focus on quality in this network, right now there really aren't any players in the niche I'm in.
There's really no room for a private, invite-only type network -- at least not one that would make enough money to be worth your time.
One key you need to understand about the display biz now -- advertisers aren't as focused on buying sites anymore. Instead, they think of it as buying "audiences." Buying from a couple exchanges will give an advertiser reach to 95+% of the web. Add in some unique data with the built in targeting of the exchanges, and you can make both very broad and very very granular buys.
There are actually players in your "niche", you just can't see them because they are way too big. The large buying platforms are capable of targeting users (audiences) on a very granular level.
The only real model that works now is:
A) create unique tech (dynamic creatives a la Like.com) or gather a unique data set (preferably do both)
B) charge a premium for use of your unique tech / data while buying on the exchange
With any other approach you either won't make much money (so big players not interested) or won't find clients / leverage (big players too ingrained already and will crush you).
ad networks thrive on volume because of the margins involved, so it's difficult to succeed without locking in large players, especially because high volume sites are probably already leveraging existing networks.
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hey jason, thanks for the response. Do you think this still applies even if I'm not looking to grow this into a huge network? and instead just want to set up a private invite only type? I'd hope to focus on quality in this network, right now there really aren't any players in the niche I'm in.
There's really no room for a private, invite-only type network -- at least not one that would make enough money to be worth your time.
One key you need to understand about the display biz now -- advertisers aren't as focused on buying sites anymore. Instead, they think of it as buying "audiences." Buying from a couple exchanges will give an advertiser reach to 95+% of the web. Add in some unique data with the built in targeting of the exchanges, and you can make both very broad and very very granular buys.
There are actually players in your "niche", you just can't see them because they are way too big. The large buying platforms are capable of targeting users (audiences) on a very granular level.
The only real model that works now is:
A) create unique tech (dynamic creatives a la Like.com) or gather a unique data set (preferably do both)
B) charge a premium for use of your unique tech / data while buying on the exchange
With any other approach you either won't make much money (so big players not interested) or won't find clients / leverage (big players too ingrained already and will crush you).
ad networks thrive on volume because of the margins involved, so it's difficult to succeed without locking in large players, especially because high volume sites are probably already leveraging existing networks.