Quantcast
Channel: The Hyperlocalist » advertising
Viewing all articles
Browse latest Browse all 10

Things done and not done

0
0

A wise man (Larry the Cable Guy, actually) once said, “Git ‘r done.” Well, I’m proud to announce: it’s done. I gave birth to a healthy baby in October, and now that the kid is mostly sleeping through the night, I can get back to debunking the business of hyperlocal news.

One thing that didn’t get past my sleep-deprived eyes during my maternity leave was news that TBD.com was ending advertising sales for its affiliates. Launched last summer, TBD reports local news in and around Washington, DC, and serves as a portal to more than 200 hyperlocal news sites and blogs. The idea behind its affiliate network was to build sales strength in numbers: TBD would act as an ad server, and participating websites would get a cut of the advertising revenue.

Everyone and their brother watched closely to see whether this model would finally turn a buck on online local and hyperlocal news. But by the end of November, TBD announced it was pulling the plug on this program. “Unfortunately, the advertising aspect of the network has not taken off as effectively as the traffic and linking relationship,” Steve Buttry, TBD’s director of community engagement, wrote.

I’m not privy to exactly what went wrong, but here are some things an ad network might do to get things right:

Start small. According to TBD, one quarter — about 50 — of its affiliates participated in the ad network. But that number might have diluted its value. It’s the danger of doing a volume business: If demand can’t move all that ad-space inventory, then the ad server and its affiliates are shit out of luck.

Instead, a network of ten or fewer websites might offer advertisers a more targeted audience and, therefore, a more valuable piece of advertising real estate. The network might not sell as many ads, but it won’t have to if it can charge a premium for its space.

Love thy neighbor. Offering advertisers a targeted audience means limiting network affiliates to a specific geographic area, maybe a single county or city. In a large market like New York, a successful network might represent just two or three adjacent neighborhoods.

A network that stretches across several counties or states (as TBD’s network does) can actually lock out advertisers who draw on sizable yet geographically focused markets. The chain-restaurant operator knows whether her food is worth a 30-minute car ride across state lines, or just a stumble across the street. She won’t spend money to advertise with a large network if her only interest is in a local or hyperlocal market.

Work it like Goldilocks. Sure, everyone wants loving from big advertisers and their big ad budgets, and no one wants to hustle for ad revenue from mom-and-pop shops. But an ad network might succeed in courting regional sponsors who have modest ad budgets and value the opportunity to speak and sell directly to core markets. It’s an approach that’s not too big, not too small, but just right.

I don’t know how much (if any) of this advice addresses TBD’s specific woes, but I do hope they find the right fit for their business structure. Git ‘r done.

Illustration of Larry the Cable Guy courtesy of Joe Bluhm.


Viewing all articles
Browse latest Browse all 10

Latest Images

Trending Articles





Latest Images