Walter Knapp, COO of Lijit Networks and SVP of Platform Revenue at Federated Media Publishing, recently wrote an article for ad industry publication Adotas on how changes in the online advertising ecosystem have affected independent publishers. A snippet of the article is included below. To read the rest of the article, please check it out online.
ADOTAS – The online advertising market is booming. The display market in particular is likely to have hit $9 billion in the fourth quarter of 2011 – a growth spurt that even on a steep chart looks like a right angle. That’s the good news. The bad news, from a publisher perspective, is that much of that spend is consolidated by a relatively small number of companies (Facebook, Yahoo!, AOL, Google, and Microsoft). This condensing ad spend runs counter to what the internet is about and why we as consumers spend so much of our time immersed in it.
What does this mean for high-quality, independent, niche and professional publishers that make up the majority of the web? Why are those publishers, authors, creators and curators of some of the best authentic, informational and entertaining content struggling for their fair share of the economics? It’s one of those things that’s simple to understand conceptually, and yet difficult to solve both at the same time.
What do you think? Please feel free to post a comment below or send Walter an email directly.