Defying Google: Adify CEO, Russ Fradin (Part 12)

Tuesday, May 15, 2007 | 2 comments

We concluded the last segment on the note that amongst Adify’s noble mission is to free the bloggers from the clutches of Google AdSense, which really abuses them. (I am only half kidding … the title of this series is deliberate, and on topic.)

SM: What kind of CPM rates are you seeing? I know FM is starting to see very good CPM rates. RF: It really depends on the vertical. I would say on average we are seeing things in the $10 - $12 range. Some verticals are in the $25 - $35 range, and some are in the $4 or $5 range. These networks, just like FM, are really competing against the portal channels. Our vertical network guys tend to see CPMs in the $8 to $15 range which is a sweet spot.

SM: When you go out to talk to the larger media companies, what do you experience in their shops? Enthusiasm, fear, caution? RF: I think there is a lot of enthusiasm. A lot of web 2.0 companies walk in and tell them that what they are doing is bad, that they should just give their assets to us and we will do it better online.

I personally, and this is not just a marketing spin, have always had tremendous respect for the access traditional media outlets own and control. Their brand name, their relationship with customers, their relationships with advertisers and their sales forces. I actually think one of the things the press has gotten wrong in recent years is when they talk about how traditional media companies are failing online, the problem isn’t that they are stupid and don’t know what they are doing, the problem is that they do not have enough inventory.

They are the leaders in their space, and the leaders in their brand, but they don’t have enough quality inventory to sell. Our pitch to traditional media companies is that Adify gives them the tools to further leverage their very strong assets. They have fabulous relationships with advertisers in certain categories and great sales forces. Obviously customers working with us are bullish about their assets or they wouldn’t be working to build new businesses on our platform.

I am sure there are traditional media companies that are worried or scared, but those are not the types of folks who would work with us. People who want to control their own destiny, to grow their importance with their customer base, are the kind of folks who deal with Adify.

This segment is part 11 in a 15 part series Segment 13 →
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