We can’t take it anymore. Every day brings news of another web site or company or media conglomerate that has decided that its path to salvation and web riches is…becoming an ad network.
- Internet advertising is growing
- Small sites can’t afford salespeople and don’t want to sell ads
- By aggregating sites, you can sell to large brand advertisers and keep a healthy cut
That’s fine logic–for a handful of ad networks. It’s fine logic for massive horizontal ad networks like Advertising.com, and it’s fine logic for leading vertical ad networks like Federated Media (though we can’t say we’re sold on the $200 million valuation). It’s even fine logic for some leading ad exchanges like Right Media.
But it’s NOT FINE LOGIC for the dozens of other ad networks that have been launched in the past year–lots of them with big brand names, lots of them well-funded. The ad network business looks like an easy business that requires no capital, so everyone and their brother thinks they can succeed in it. Martha Stewart, Forbes, SoapNet, Blogads, Spleak–we can’t even keep count anymore.
Knock yourselves out, folks. But when you don’t get anywhere, don’t come crying to us.
See Also: Calcanis: Ad Networks Are For Losers
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