Defying Google: Adify CEO, Russ Fradin (Part 7)

We talked about the fragmentation in the media business, with the long tail developing a stronger influence overall. Adify’s genesis is in this trend.

SM: What is the significant opportunity you see in the fragmentation phenomenon? RF: First we realized that brand marketers are going to have a challenge.

Point number one: brand advertisers need to spend more money online.

Point number two: agencies have less money to spend it with because we all know agency margins are shrinking. Essentially agencies have to spend more money with fewer dollars.

The third point is that as a result of fragmentation, agencies have to spend more money with fewer dollars on more sites.

An agency that is really paying attention to brand, and really trying to work intricate brand messaging, is never going to say “go ahead and run my ad across whatever 50,000 sites you want”. That would be crazy. Just like in other forms of media there is a real role for an aggregator to play.

SM: So you are looking to play the aggregator role? RF: Aggregating the high quality inventory in any given niche is what FM publishing is doing.

What we realized at Adify is that there would be hundreds, if not thousands of these niche ad networks around the world, which are specifically run by the experts in any one category. Whether it is skiing, horseback riding, women’s health, automotive, conservative politics, or whatever it is going to be, advertisers are going to want to reach that demographic just like in the magazine world, just like in the broadcast cable world.

There will be a need for experts to aggregate the high quality inventory, to bring them something that is highly relevant to their category and large enough to be worth the time to purchase. So not only did we realize that there are going to be thousands of these firms, but we also realized that they are going to need infrastructure.

SM: That’s where you come in!

[to be continued]

[Part 1]
[Part 2]
[Part 3]
[Part 4]
[Part 5]
[Part 6]
[Part 7]
[Part 8]
[Part 9]
[Part 10]
[Part 11]
[Part 12]
[Part 13]
[Part 14]
[Part 15]
[Part 16]

This segment is part 7 in the series : Defying Google: Adify CEO, Russ Fradin
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