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Quigo in the news

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The NYT has a nice write up on Quigo today. CEO Michael Yavonditte seems to think the door is open to pass up Yahoo as #2 in the contextual ad market.

“We are gaining a lot of share,” said Michael Yavonditte, the chief executive of Quigo. “This has become a multibillion-dollar industry with no clear second-place company. There’s a lot of opportunity for other companies to put their own stamp on it.”and mainly points out the opportunity for a #2 in the contextual ad market below Google their business model.

While this is a positive piece I couldn’t help letting this comment from ad exec Jason Klein get a little under my skin.

said Jason Klein, co-chief executive of Special Ops Media, an interactive ad agency.

“Because traditional networks are blind, I’ve always assumed that many of the places where your ads come up are on B- and C-level sites,” Mr. Klein said. “With Quigo, you know it’s on ESPN.com, not Joe Schmo’s sports blog. It’s a premium site, and you’re willing to spend more money.”

I wonder how much traffic you have to get before you surpass “Joe Schmo” status for Mr. Klein. Is this blog good enough?

How about this one?
Others blogging this story: Seth Godin (who knows more about this stuff than I ever will) thinks it was more than just an insensitive comment by Mr. Klein

So, does it matter where the ad runs if it works?

Media buyers sure think so. Jason Klein at Special Ops Media says, “With Quigo, you know it’s on ESPN.com, not Joe Schmo’s sports blog.”

I can understand why a media buyer would say this. I can understand why Jason Clement at Carat said, “We had essentially pulled all of those big advertisers off of the ad networks [Google, Yahoo] by the end of the year.” After all, the media buyers need to demonstrate that they are using their hard-earned intuition to actually earn their commissions.

But if I were one of those ‘big advertisers,’ I’d think really hard about whether Jason is doing me a service. The hard work of running contextual ads is testing. Run an ad, test the landing page, see what works. If it works, do it more. If it doesn’t work, do it less.

So I guess I wasn’t just being sensitive. Read all of Seth’s post. You don’t want to miss his killer close.

Andrew Goodman takes it a step further:

Seth, both the intuition and the data point towards there being nothing inherently wrong with Google’s approach to matching ads with content. No, the program isn’t perfect, but placing high-CPM ads on big brand sites just because I want to appear respectable isn’t exactly a challenge. It’s more of the same: take too much of the client’s money, and waste it, and claim the blue-chippiness of that approach as a benefit.

Soaring on Ridgelift:

Brand owners care as much about the quality of the audience as they do in generating click-through to their site.


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