We concluded the last segment on the note that amongst Adify’s noble mission is to free the bloggers from the clutches of Google AdSense, which really abuses them. (I am only half kidding … the title of this series is deliberate, and on topic.)
SM: What kind of CPM rates are you seeing? I know FM is starting to see very good CPM rates. RF: It really depends on the vertical. I would say on average we are seeing things in the $10 – $12 range. Some verticals are in the $25 – $35 range, and some are in the $4 or $5 range. These networks, just like FM, are really competing against the portal channels. Our vertical network guys tend to see CPMs in the $8 to $15 range which is a sweet spot. >>>
I wrote a very popular piece 2 years back called Hey CEO: Do you know how to dress? In the interim 2 years, Design has become a critical and celebrated element of business success. Business leaders have started paying attention. Nerds have started getting intrigued by right-brained creativity, even though they don’t quite understand the Science of Art.
These last 3 weeks, I have been in Europe, looking at great designs – both from the past, and also cutting edge, modern designs. I will write more about that as I gather my thoughts, as well as post some pictures. >>>
Microfinancing structures are an area of interest for me. With Selco, Harish has had to tap into various microfinancing structures. He describes these in a bit more detail, as well as how he leverages outside help to promote his cause.
SM: Let’s talk about financing a bit more; microcredit, microequity, microfranchise – the microfinance structures you are putting together to deliver these solutions. HH: We use microfinancing particularly well when you have a case where a lot of customers, 200 houses or so, and all are willing to pay 175 rupees a month for a system which cost 11,500 rupees.
A bank will want a 10-15% down payment, which is approximately 1,100 to 1,500 rupees of margin money. The people cannot afford the margin money, and the bank insists on the margin money, so we step in and place a guarantee on behalf of the end users. They get the loan on our guarantee, and after a year or so we can get our guarantee money back. >>>
We left off at the point where I concluded that there is no network out there with any business ad inventory except FM.
SM: Part of my problem is that the Washington Post talked me into signing up, but they have no business ad inventory. RF: Well, start your own! Actually, I would never talk someone into leaving one of our customers’ networks, but many of the conversations I have inevitably turn into discussions about people starting their own networks.
SM: You mentioned Glam earlier, are they powered by you? RF: No they are not. Glam, FM Publishing and Jump Start are three very nice vertical networks who were started years before Adify, but when we were starting the business we really liked what they were doing. I would not call them competitors, I would call them kindred spirits. There are other folks who believe there is something different between aggregating high quality inventory in a vertical and just aggregating as much broad reach as you can find on the Internet. >>>
A brand is the emotional vibration between a company and its customers. That vibration is about establishing trust that customers should expect a consistent experience with the products and services of a company.
An example of that emotional vibration is Jaguar, at least in the 1950s and 1960s. >>>
In a previous post, I discussed Time Warner’s digital media strategy. In this one, I will analyze their move into Ad Networks, via an investment in Adify, a small company providing technology infrastructure services for building and running ad networks. [If you are new to the field on online advertising, please read my interview with the CEO of Adify for domain knowledge and a mapping of players and business models.]
Time Warner has recently joined hands with NBC to form a Media fund, and the investment in Adify comes out of that fund. >>>
We have spent a few weeks discussing online advertising and ad networks with the CEO of Adify. In this post, let’s take a look at how blogs would be able to leverage quality ad networks.
Today, the notion of ‘A-List’ bloggers depends on 2 things: (a) Traffic (b) Content. Often, you find blogs with high quality content languish lower down in the Alexa or Technorati rankings, because the authors are not necessarily investing energy in Digg, Del.icio.us, Reddit, and other traffic driver sites. Nonetheless, it is still a combination of the two that would get you to the stature of an A-List blog. >>>
Here Harish provides us with a case study of his business model. This is just one example, and they have 80,000 installations, so you can appreciate the impact Selco has had.
SM: A lot of our readers likely have no idea what a very poor village in India looks like or what issues they deal with. Can you give us some examples of your intervention? HH: One of the best cases which provides a great visceral overview, occurred several years ago. In our company we have to think of ways to help the poor, not sympathize with them. >>>