We’re talking about large media companies and their assets: readership / traffic, brand, channels, advertiser relationships, sales forces, and inventory. Why should old media just concede the battle to Google and Yahoo, with so many great assets?
SM: Not only do they have great sales forces and good relationships with advertisers, but they also have tremendous traffic. RF: The issue tends to be that they do not have tremendous traffic of the valuable inventory. One of the reasons these traditional guys work with Adify is that they have a lot of traffic, but they could sell a lot more traffic than they already have.
SM: Yes, exactly. They have the channels to access more traffic if they have cost effective content available. The cost structure of producing content in media companies is problematic. RF: Right, and we enable them by introducing them to all these other websites out there who would love to be associated with the media companies. They already have a sales force who knows how to sell their media, so why not work with these other sites?
Time Warner and NBC have invested in us, and we have all of these great customers, and this is why. I am not saying anything against Google or Yahoo, they are very successful companies, but that does not mean that the rest of traditional media should just pack up their bags and go home.
SM: I would love to partner with a CNN Money, or a Business Week, or a WSJ or somebody who has the channel to get me exposure to additional business traffic. I would love to be able to leverage the traffic and share revenues with them. I have no problem with that. RF: Give them a call, tell them to start a network. Just like any other small company, one of the things we are doing with this money is hiring more sales people and marketing people. Every day I think of 10 companies I would like to be working with that we are not talking to yet, just because we are small and we have not gotten to them yet.