It’ll be interesting to see what happens when the Verizon availability of iphone kicks in.
COD IS MOVING STARTING MONDAY 0
Starting on Monday, COD moves to the ad:tech blog, and changes its name to Start-Up Watch Company of the Day! Same questionable opinions, shiny new venue!
I’d like to tell you it feels melancholy, but with 30X the audience, nothing melancholy about it. The new venue:
STARTING MONDAY!!!
Please click early and click often.
The Holding Company’s Will Be Launching Sales Rep Firms Within 2 Years (Mediapost 1.26.11) 0
Here’s a crazy idea to think about; what if the large agency holding companies start to get into the publisher rep business? Hear me out on this before you pass judgment, it’s not as crazy as it sounds.
The agency holding companies have a model that requires continued growth and the fact is the agency business is shrinking. You can see earnings releases from the big 5 that will contradict what I’m saying, but if you slice and dice the numbers you’ll see that as a whole, revenue generated by all agencies in the US put together is probably going down. Some companies are winning due to consolidation, but margins are getting squeezed, especially when it comes to media.
Hence, the birth and fast adoption of DSP’s and the automated buying tools that many agency holding companies are investing in. The biggest success of this in the agency world is Cadreon, which seems to be continuing a fast pace of growth. The agencies are finding a way to commoditize that portion of the online ad business that is based on data and standardized units. There are also a number of companies that are creating “network” solutions for non-standard units, so the trend here is to automate, decrease the staff, and increase the margin against this portion of the business. It’s logical.
Not all the online media can be commoditized, and that leaves some large, stand-alone, well-branded publishers who will continue to staff a sales team and service the agencies, but what if the agencies began to pitch the publishers with a model that was based on guaranteed inventory, decreased staffing costs and increased profitability? That is a formula that many of these publishers, many of which are having profitability issues of their own, would listen to.
If I were the CEO of one of the holding companies, I’d begin to build a business plan that created a rep management service to consolidate the sales efforts, cross media (including online and offline) for vertical categories of publisher and guarantee the revenue to the publishers in exchange for them taking their sales teams off the streets. In doing so they would decrease the costs of those publishers, they would lock in the premium inventory they need for their clients, and they would become a one-stop-shop for all media (targeted and untargeted) for their clients. They could still sell the media to their competitors at market prices, probably making money on the deals, and they would sell the media to their own clients, making money on the difference between their upfront buys and the selling price to their clients.
It may sound like a conflict of interest, but if you dive a little deeper you can find that the holding companies are already getting into this business little by little and it makes sense. Their job is to get their clients messages into the hands, eyes and ears of the target audience. If they happen to represent that media or buy it separately, there’s minimal difference. In many cases the holding companies already do deals for kick-backs and commissions on the flip side, so why not just bring it out into the open. They have to make money somehow, right? Additionally they already own the DSP’s and in some cases the networks where the money is being placed, so the conflict already exists and many people don’t seem to mind too much.
The rep firm model has taken a nose-dive in recent years, but if you consider that it still works for premium, cross-platform inventory which is not well-serviced through a commodity trading desk than you can see where the opportunity lies. And for publishers, who are combating rising costs to sell their inventory in a cluttered market, this represents a solution that though unconventional, still satisfies their needs.
Think about it. The holding companies are going to reinvent the business at some point. It may not be overnight, but if they can control the flow of media dollars on both sides of the equation, then they can set prices and maintain profits. It’s not a monopoly because anyone can get into the market if they can be competitive, but it is an interesting idea. What do you think? Tell me on the Spin Board!
COD: Words can’t describe the wonder that is Quest Visual’s WordLens 0
Nothing I can say about this unbelievably unbelievable app will have 1/10 of the value of just showing you what it is. Watch and believe that there is a God. And apparently he works at .
I don’t care if you have any Spanish to translate. Buy the damned app as a means of showing your love for the remarkably remarkable. Oh. My. God!
iPhone only thus far, but they are hinting about Android, WinPhone7, Palm, and Blackberry.
Thus far I have seen three AR applications that are more than just silly gimmicks. The real estate dealy. The (which, OK, is sort of a gimmick, but it was still an awesome product.) And this, the eighth wonder of the world.
COS: Bartab means virtual gifts that are anything but virtual (hic!) 0
The integration of digital into brick and mortar business is proceeding quickly, and one of the msot intriguing expressions of this trend is Bartab.com, an SF-based startup that lets you send and receive $1 drinks with your Facebook friends.
It’s quite ingenious, and like the best ingenious things, dead simple.
1. Join
2. Choose a bar from the list of participating bars
3. Choose a drink from the bar’s list of promoted drinks
4. Send the drink coupon to a friend (or yourself.)
5. To redeem, you show the barman or barmaid your phone and pay a buck
Wowza, hunh?
- What a great way for a bar to drum up business!
- What a great way for budget conscious young people to go out at a slightly lower cost.
- What a great way for a control freak to get their way on what bar s/he and the friends will patronize that night.
- What a great way for liquor brands to promote mixed drinks versus suds.
- Or suds companies to promote their brands of suds.
- Or or or.
There are a variety of reasons why this sort of model might work better for bars than group couponing. Because I would imagine that trial rates would be enormous, given that you pay on premise versus online for a coupon you might or might not get around to using.
I would also be interested in knowing the impact this has on tipping. In my (extensive though now dated as I have not had an alcohol drink in 10.5 years) experience, a buck a drink is a “normal” tip in a bar. My suspicion is that a customer would be AT LEAST that generous on a discounted drink.
I would also think that you are covering your costs on a lot of drinks (using well brands,) so there wouldn’t be the danger of creating unprofitable sales. So long as a reasonable number of people follow up the discounted drink with a full priced one, there’s great money to be made here. And the opportunity to drive trial and loyalty makes this a really intriguing bar marketing tactic.
Teaser: Big News Coming on Friday! 0
What could it be?
COD: Me likey Thingd’s Fancy 0
What do you get when you get a whole mess of people together to show the community what things they like? Well, the people at Thingd.com have created just such a community in thefancy.com, a site where people share photos of their favorite things with the world.
You join thefancy.com and scan through the things others have found and posted. Or you can add new things from any website with their toolbar button. Search for like minded or interesting people and collections. Follow collectors, experts, stores, or your friends.
When you see something you must have, you click the photo and get redirected to the site where the photo originated. From there (presuming it’s a store) you can buy it in the usual way.
As of this writing (I write some listings a couple weeks in advance) there’s no info on the site on how they plan to make money, but it’s easy to see so many distinct possibilities on that front. TheFancy.com might get a referral fee from an online store, or create it’s own “middlestore” that would allow people to buy on thefancy.com and get goods shipped from the originating store. That’s just two of the myriad examples I could provide.
I was impressed by both the originality of this concept and by the community members and things that they had uncovered. Search by item type, by user, by keyword, or just scan the panoply of everything recently uploaded. You get to see so much cool and unusual stuff, and by dint of it being “pre-fancied” by another member, you have some assurance that it is as cool as it looks.
I liken it to a virtual window shopping experience, but with a whole mess of very cool windows in which to peer.