The long tail of monetization: another battle nearly lost for traditional publishers

Good recap from Ad Age on the tensions underlying the online advertising. Basically, when a traditional publisher finally get to identify a high quality audience, that he managed to brought on his site through content investments etc., he’s only getting the smallest piece of the pie (the amount monetized on the site itself)…

 

The “long tail” of the monetization is then usually captured by the ad networks for a cheaper rate, helped on that by the many behavioral providers (Revenue Science, Tacoda etc.). It’s ironic because what makes these users valuable to advertisers is precisely the fact that they’ve been through and interact with the original publisher site.

 

The only way to escape the vicious circle is for publishers to concentrate vertically. That’s what we’ve done at Hachette with the acquisition of Jumpstart Automotive that offers behavioral targeting solutions, enabling us to capture most of the monetization long tail.

 

Here’s the full article: http://adage.com/digital/article?article_id=133523

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