Tracking the Other 90% of Inventory

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Order cardura generic Claria recently announced that they were abandoning and disposing of their adware business and moving towards PersonalWeb, a behavioral content platform that provides audiences with content pages that automatically adjust based on consumer actions.

Claria used to be the flagship adware company that was going to change the negativity towards adware and validate the business. Even though it’s been drastically declining, abandoning adware is a bold step for Claria. To further show their commitment to PersonalWeb they announced a $40 Million dollar round of financing from such high profile venture firms like SoftBank and SandHill Capital. Change is in the air for Claria, but this is reflective of something greater.

It’s no shock that adware is down for the count these days. Consumers are thrilled to eliminate it, distribution is nearly impossible, and many advertisers refuse to be associated with it. This is only a step in the cycle for adware and I fully believe that it will eventually find its place in the world as a smaller, stable, respectable marketing method. However, like email, that will take time and many companies aren’t waiting around. While adware is an interesting topic, this isn’t another article about the soap opera of adware, I promise.

Claria’s decision to focus on a behavioral oriented advertising platform really underscores the drive towards various targeting technologies and the need to bring greater intelligence and efficiencies to inventory. The need for targeting isn’t new, but the momentum that’s been building towards behavioral, contextual and alternative targeting methods has reached an all time high. I think this is great, and the list of companies tackling this problem is long, but the bigger opportunity is being missed.

We all agree that targeting is very important, but I am becoming alarmed at how little innovation is going on with non-targeted inventory. There’s so much momentum on how to target better and increase the yield on that final 10% that the other 90% has been left to float mindlessly to CPA Networks in the inventory pool. CPA Networks have a very valuable place in the food chain, but typically there’s little automatic or sophisticated optimization happening in this area, most yield management is happening organically through individual experiences. While this is powerful, it’s not efficient and leaves a lot of money on the table.

CPA networks are growing in leaps mainly because high-risk accountable advertising money is focusing more on targeted inventory and the response oriented money can afford the low risk non-targeted inventory. This leaves a huge hole for CPA networks to accelerate. The issue though is that CPA networks primarily leave it up to the publisher to figure out what to do with their masses of impressions and this isn’t always the best way to maximize return.

I truly believe that the big opportunity is being missed and that finding more sophisticated ways to democratize and enhance the yield on non-targetable inventory is the next step in mass revenue growth. Targeting by the heavyweights is critical, and sophisticated advertisers require it, but it reflects a smaller percentage of potential revenue. Claria’s decision to utilize their skills in targetable traffic makes sense and it’s a bold decision that is to be admired, but it’s reflective of the “me too” atmosphere surrounding the bells and whistles of targeting these days. I certainly hope that in the next phase we will be able to address the remaining 90%.

4 COMMENTS

  1. This missed opportunity will be a big problem for affiliate networks in the future. We are in the affiliate marketing business for some years now, and don’t see anything being developed to empower the affiliate masses to better utilize their traffic. There is a huge market for a smart solution to optimize CPA traffic out there, just nobody seems to notice. Is it really that hard?

  2. […] Robert Regular has a piece at adotas today where he looks at the larger implications of our launch yesterday: Claria’s decision to focus on a behavioral oriented advertising platform really underscores the drive towards various targeting technologies and the need to bring greater intelligence and efficiencies to inventory. The need for targeting isn’t new, but the momentum that’s been building towards behavioral, contextual and alternative targeting methods has reached an all time high. I think this is great, and the list of companies tackling this problem is long, but the bigger opportunity is being missed. […]

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