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Who are the new monetization leaders of tomorrow—especially given the current headwinds in adtech?
by Calvin Yee | February 15, 2016
The new leaders in monetization frankly don’t care what is happening in adtech. If you are really worried about adtech’s affect on your business then your revenue and business model is not diverse enough. The new leaders are collecting (and keeping) data around their audience behaviors and finely segmenting them. Why? Because it is everything but advertising that will drive the future.
Subscription revenue? Content is free today but if you have differentiated content, sell it at a premium (e.g. The Information). Brands don’t want “exposure”, they want engagement with their target segments in controlled, off-line environments (e.g. GQ Events). And yes e-commerce is a tough business but
“Because it is everything but advertising that will drive the future.”
when you hold inventory it is never really going to work at all. Affiliate marketing or marketplaces (Supercompressor/Thrillst for men, PopSugar for women, XOGroup for weddings.) are real, reliable, repeatable revenue sources. If you rely on advertising, you get EveryDay Health publicly traded $250M in revenue and $140M valuation. The market is telling us that is not going to be rewarded. Diversify. Yes, we sound like your financial advisor. Simple concepts work.