Small is the New Big

May 15, 2008

Who is making money on online CPMs these days? Glancing at the graph above, made by PubMatic, I assumed that the highest price went to Large Web Sites. Unh-Uh. It’s small sites. Niche sites. Sites that advertisers know what demographic they’re getting. Not only do small sites get the best CPM, their CPMs are growing and are 4 times that of big sites.

If you’re questioning the value of niche… If you’re unsure of the longtail… this info should start to shift your brain rift.

Now we’ve just got to figure out how to make a whole bunch of quality niche sites. After all, small is the new big, but we’ve got to ride the scale whale.

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Woody, Cliff and Norm on The SimpsonsImage via Wikipedia

A Vertical Ad Network appears to be a thing of beauty. One such network, Adify, just sold to Cox for $300 million. Cheers to them, but I didn’t know what a Vertical Ad Network was until I read Andrew Chen’s explanation. An important thing for any LoMediaCo, New Media Startup, or long-tail blogger to know.

Side note: funny that Zemanta only picked up on the word “cheers” and popped up this picture.

The basic premise seems to be for websites without ad sales expertise to outsource their ad selling to a Vertical Ad Network. Seems that if a VAD can get a website a higher CPM than before, it’s a given that outsourcing is the way to go. Plus, less hassle and headache.

Any LoMediaCo’s using a VAD? Anyone willing to experiment?

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