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Friday, August 19, 2005

Floor CPMs for 3rd Party Ad Networks 

Why don't 3rd party ad networks take any risk? (or why the "floor CPM" is the future)

Jason Calacanis ponders the idea of setting CPM floors when working with 3rd party ad networks. His story of one ad rep's reaction is worth a read.

Grab: This all has me wondering, how did we get to the model that the publishers take all the risk? Said another way, what are these networks risking by signing up publishers?

Jason's post touches on the core of my concerns with the way Adsense works with publishers (at least, with small publishers like me and my clients).

On a related note, what do you think Google is going to do with the $4 billion it plans to raise? For the New York Times' take, see here.

Grab: With perhaps $7 billion in cash, Google could also consider acquisition of a media or digital content company, analysts said.

As the story points out, Google has made good use of the "acqhire," Rex Hammock's pithy term for a hire hidden within an acquisition. But the $7 billion will probably be used for more than that.


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