Archive | July, 2010

How Revenue Sharing Impacts Publishers Profits

Posted by: Matt Shanahan My last post got me thinking about a mantra I frequently hear in the adtech community.  The mantra is “advertisers have all the money.”  It’s a bit distorted.  It is like saying, Ford doesn’t have any money only their consumers do.  This mantra affects everything from venture investments (e.g., emphasis on demand side vs. supply side platforms) to business models (e.g., revenue shares rather than fixed costs).  In particular, the revenue share philosophy has created some toxic business model structures that sooner or later need to be fixed.  To illustrate the issue, imagine a manufacturer that needs different software systems to produce cars.  Those systems might be computer-aided design, factory order management, and supply chain management.  Let’s suppose the manufacturer is […]

How Visit Data Provenance Impacts Publisher Revenue

Posted by: Matt Shanahan In my previous post, the lack of provenance for visit data was described as a big hole in web analytics tools such as Google Analytics and Yahoo! Web Analytics.  Provenance allows a publisher to enrich visit data with information from circulation, CRM, or other databases.  Provenance also enables visitor analysis to identify patterns in behavior.  These two capabilities help publishers maximize the lifetime value of visitors with improved targeting and prediction. Improved targeting comes from visit data enrichment.  The easiest way to increase the potential pool of advertisers, is to create more targeted segments.  Visit data enrichment allows publishers to slice and dice their impression inventory in smaller chunks.  The smaller and more targeted the chunks, the more […]