Wednesday, May 02, 2007

Ask.com To Launch Contextual Advertising Product

Apr. 25, 2007 at 12:01am Eastern by Barry Schwartz Ask.com To Launch Contextual Advertising Product Ask.com is launching a new sponsored listings contextual product and will go live the week of May 21st. The Ask contextual product will initially launch within IAC's own network of sites including Match.com, Ticketmaster, Evite and Citysearch and will then expand to trusted third party publishers. Individual publishers will most likely have to wait until next quarter to gain access to this contextual product. Current Ask Sponsored Listings advertisers will be automatically opted into the contextual network, but will have the option of opting out before the product launches. In addition, advertisers will be able to preview the features and controls they have, prior to the launch date. The advertiser controls will be separated; there will be unique bid prices for contextual ads as well as unique, separate reporting tools, and referrer blocking. The publishers will have two unique features that are not currently available in the Google AdSense and Yahoo Publisher Network. Publishers will be able to set "page yield thresholds" and set "relevancy thresholds." There will be levers to allow publisher to determine if they want higher paying ads or if they want more relevant ads with these levers. In addition, the ads will be unique from that of Google and Yahoo ads. Ask told me that they will allow "very customized" interfaces for the contextual ads; such as customized backgrounds and graphics. Let me just clarify one more time that they will first launch with IAC's own network and trusted publishers, then possibly, in the next quarter, allow other third party publishers sign up to the contextual program. Here is the full release: IAC Advertising Solutions Announces Contextual Advertising Product Contextual advertising offering creates new revenue options for publishers, expands distribution options for Ask Sponsored Listings advertisers OAKLAND, Calif. – April 25, 2007 – IAC Advertising Solutions (IACAS), a wholly-owned business of IAC (Nasdaq; IACI), today announced a contextual advertising product that enables publishers to generate revenue via contextually-relevant ad units on their content pages. The contextual product is integrated into the Ask Sponsored Listings (ASL) platform and allows ASL advertisers to seamlessly extend their pay per click advertising campaigns to content pages. Reaching over 34 million unique users each month the ASL content advertising network will launch with sites from IAC’s portfolio of brands including Match.com, Ticketmaster, Evite and Citysearch. “IAC Advertising Solutions already operates the 3rd largest search advertising network1. We’ve achieved this scale by providing innovative and flexible monetization solutions to more than 90 publishers. We are excited about this new offering and the expanded set of publishers that we’ll be able to serve through a content advertising network.” said James Speer, GM Search Marketing at IAC Advertising Solutions. IACAS continues to make significant investments in people and technology to better support a growing network of publishers. “We have consistently heard that publishers want more diversity in their revenue streams and transparency into the true value of their inventory. We fully expect that our new contextual product will satisfy the needs of these content owners” said Speer. The value of contextual lies in its ability to deliver relevant high yield advertisements deep within the content channels of web properties. As a result publishers are free to focus resources on other revenue streams including integrated brand sponsorships. The ASL contextual product provides superior sell through today for publishers of technology, telecommunications, travel, automotive, real estate and finance content. Contextual Advertising Features and Benefits Increased Page Yield Higher revenues due to an established and growing advertiser base Improved relevance and higher yields than ROS/RON CPM ads Customizable yield thresholds to support page yield management Self-serve revenue reporting portal Revenue reporting across multiple channels and products Enhanced Editorial Control Customization of ad look and feel (background color, font, layout, graphics) Customizable relevancy settings to meet user experience goals Editorial control of advertisers (competitive advertiser blocking) Editorial categorization of site pages is supported Improved Integration Capabilities Contextual ad tags can be served via existing publisher ad servers (i.e. DFP, AdManager) Standardized ad tags promote quick and easy implementations with little or no maintenance The Ask Sponsored Listings contextual product will be available during the week of May 21st. For more information publishers can send email to bizdev@ask.com 1 Source: comScore and internal data, January 2007 About Ask Sponsored Listings Ask Sponsored Listings, introduced in the Fall of 2005, is an automated open-auction system allowing marketers to purchase, manage and optimize campaigns on Ask.com and its publisher network. The ASL search advertising network is now the 3rd largest reaching 61.4 million monthly unique users. More than 30,000 advertisers use the system to bid on more than 25 million keywords. Additional information about ASL is available at http://sponsoredlistings.ask.com IAC Advertising Solutions is also demonstrating its commitment to stemming click fraud as a member of the IAB Task Force on the issue. About IAC Advertising Solutions One the world’s largest online advertising solutions and sales groups, IAC Advertising Solutions offers complete solutions for a variety of communication needs and a comprehensive range of advertising products, including search, media, and direct marketing. Search solutions include Ask Sponsored Listings, an automated open-auction system allowing marketers to purchase, manage and optimize campaigns on Ask.com and its advertising syndication network. Media solutions include online templated ad units and integrated sponsorships, as well as offline media capabilities on IAC’s network of leading online brands, including Ticketmaster Citysearch, Evite, Match.com, iWon, Excite, and Expedia. Direct Marketing solutions include email, lead generation, co-registration, sweepstakes and promotions. IAC Advertising Solutions is a division of IAC Search & Media, a wholly-owned business of IAC (NASDAQ: IACI). IAC Advertising Solutions can be contacted at www.iacadvertising.com or 212-404-1000. Postscript: Marchex released a press release that shows they are one of the few early contextual ad partners in this program. Marchex, Inc. (NASDAQ: MCHX, MCHXP), in conjunction with its IndustryBrains subsidiary, today announced that it has signed contextual advertising agreements with four online publishers, including Computer Shopper, Engineering.com, Wall Street Reporter, and SitePoint. Under the agreements, Marchex will provide its contextual advertising solutions to selected areas of the publishers' Web sites, or to channels associated with the sites, such as targeted newsletters and blogs. Postscript #2: The Ask.com Blog just covered this explaining that this product different from the competitors because of three reasons: * It gives publishers more control over yield and relevancy * It gives publishers more creative ad unit opportunities * It allows both advertisers and publishers more control over where and what ads are displayed

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Blogger hack: Expandable posts with Peekaboo view

Blogger hack: Expandable posts with Peekaboo view Your blog's main page usually shows the entire content of each post. If your posts are usually more than 2 paragraphs, then your visitor will find it difficult to quickly find the topic of interest to him because he needs to scroll down a lot. This is where expandable post summaries helped in the old Blogger. This hack serves the same purpose for the new Blogger and more! That is, main page will show only post summaries and when you click "Read more", the full post appears in the main page itself (Peekaboo view)!! I got some requests to do such a hack and I managed to get it working. Later, Hans improved it by adding a "Summary only" link with which you can collapse the post back to summary. link to full instructions here http://hackosphere.blogspot.com/2006/09/expandable-posts-with-peekaboo-view.html

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Blinkx Video API

Blinkx API: The Blinkx service “uses automatic spiders that crawl the Web, and through partnerships with 200 leading content and media companies, blinkx has indexed over 7 million hours of video content and made it fully searchable using speech-to-text transcription and visual analysis.” Note that the API documentation is only available after registration.

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Lexar rolls out 4GB, 8GB, and 16GB ExpressCard SSDs

from Engadget by

We already knew that Lexar had an 8GB ExpressCard SSD up its sleeve, but it seems that the company just can't get enough of that high-speed solid state storage, today announcing 4GB and 16GB cards in addition to officially announcing the 8GB model. From the looks of it, both the 4GB and 8GB models will give a peak data transfer speed of 250 MB/s (we assume the 16GB will be the same as well), with all three coming bundled with Lexar's auto-backup software, and each ready for use with Vista's ReadyBoost feature. While the whole lot of them are supposedly shipping now, there only appears to be pricing details available for the 4GB and 8GB models, with them setting you back $130 and $200, respectively.

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Kodak - Winds of Change (humor)

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Digg Surrenders to Mob

from TechCrunch by

To say what happened today on Digg was a “user revolt” is an understatement. The Digg team deleted a story that linked to the decryption key for HD DVDs after receiving a take down demand and all hell broke loose. More stories appeared and were deleted, and users posting the stories were suspended.

That just got the Digg community fired up, and soon the entire Digg home page was filled with stories containing the decryption key. The users had taken control of the site, and unless Digg went into wholesale deletion mode and suspended a large portion of their users, there was absolutely nothing they could do to stop it.

Digg CEO Jay Adelson responded on the Digg blog earlier this afternoon but it was clear he did not yet understand the chaos that was coming. The post only added fuel to the fire. Just now, co-founder Kevin Rose posted yet again on the Digg blog, effectively capitulating to the mob’s demands: He says

But now, after seeing hundreds of stories and reading thousands of comments, you’ve made it clear. You’d rather see Digg go down fighting than bow down to a bigger company. We hear you, and effective immediately we won’t delete stories or comments containing the code and will deal with whatever the consequences might be.

If we lose, then what the hell, at least we died trying.

Until today, it seems, even Digg didn’t fully understand the power of its community to determine what is “news.” I think the community made their point crystal clear.

Vive La Revolution.

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Getty goes multimedia, acquires smaller firm

Stock-art seller branches into video and multimedia, acquires PunchStock for more imagery.

By Stephen Shankland Stock photo seller Getty Images launched a new division Monday for selling licenses to footage and multimedia content, then on Tuesday announced the latest in a series of acquisitions, PunchStock.

Leading the multimedia group is Craig Peters, who joined Getty through its acquisition last week of MediaVast and its subsidiary WireImage, which licenses video content. Peters was senior vice president of new media at MediaVast.

PunchStock, based in Madison, Wis., adds a third stock image unit to the company, supplementing Getty's core business and the newer iStockphoto acquired in 2006. PunchStock offers simpler licensing and search, Getty said.

Getty has been reshaping its business through recent acquisitions. In March, Getty acquired Scoopt, a site that sells amateur photos to the news media. "Citizen journalism is 2,000 years old," Getty CEO Jonathan Klein said in an interview earlier this week, arguing that amateurs can supplement professional coverage and that Getty can assure media outlets using that content that its provenance is sound.

Getty announced the PunchStock acquisition along with its financial results for the quarter ended March 31. The Seattle-based company's revenue increased 6 percent to $213 million compared with the year earlier, and net income was $38 million, or 63 cents per share.

The company also announced it's restating financial results from 1998 through the first half of 2006 to deal with errors in its stock-based compensation. To correct the situation, the company expects to take a noncash charge of $28 million to $32 million, 95 percent of which involves finances in 2002 and earlier years.

A special committee investigating the stock situation concluded in April that the evidence "did not establish any intentional wrongdoing by current employees, officers or directors of the company, and the special committee continues to have confidence in the integrity of current management."

(thanks, Owen)

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Tuesday, May 01, 2007

10x Revenues

Companies don't really sell for multiples of revenue, but the math is easy so everyone does it.

I've read that Doubleclick sold for 10x their revenue of $300mm.

And that Right Media sold for 12x their annual revenue of $70mm.

Please correct me if I am wrong on these numbers as I am just relaying what I've heard and don't have access to the financials of privately held companies.

I believe that ultimately price needs to be factored as a function of EBITDA - earnings power. It could be the present value of future cash flows, it could be a mutiple of current EBITDA, it could even be a multiple of the cash flow that a buyer believes it can get by merging the asset into its business.

So when I see online advertising assets trading at north of 10x revenues, it makes me think that it's the latter factor at work.

I've heard that AOL monetized their acquistion of Advertising.com buy running all of their unsold inventory through Ad.com and that they got a tremendous return on investment from doing that.

So that may be the play for Yahoo! with the Right Media acquisition. And thus a multiple of current revenue or even cash flow is largely irrrelevant.

But even so, these are large numbers being paid and as a part owner of three online ad networks (TACODA, FeedBurner, and TargetSpot), I am thrilled to see these trades print.

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Tesla scales back range targets

Filed under:

While we doubt it'll be enough to get any of the lucky few first customers to cancel their orders, those planning a long haul trip in their shiny new Tesla Roadster may find themselves slightly disappointed when they finally get the keys, as the company's pulling back a bit on its promised 250 mile range on a single charge. Apparently, testing the car on an EPA-compliant dynamometer proved to be a bit more taxing than their initial estimates, forcing them to reconsider their boasting. While Tesla's not quite ready to get specific with the new numbers, it says it'll still come in at greater than 200 miles, which would still peg it well above other, less stylish electric vehicles. Now, if they'd only find an excuse to scale back the price.

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Monday, April 30, 2007

Lexar's 8GB ExpressCard SSD sneaks on the scene

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While Lexar does a fine job competing in the flash memory arena, it appears that the outfit is giving it a go in the solid state disc realm as well. According a marginally descriptive product page, Lexar is offering up an 8GB ExpressCard SSD, which should go nicely above that 120GB PCMCIA NAND drive as you attempt to cram more storage into peripheral slots than inside your laptop's casing. Moreover, the device features a peak data transfer rate of 250Mbps, and while it doesn't appear to be available for shipment just yet, it'll run you a penny under $200 when it formally launches.

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Hip-IP's Mobigater Pro routes Skype calls to your mobile

Routing calls every which way has been going on forever (well, almost), and Hip-IP's Mobigater Pro doesn't differ a whole lot from other Skype-to-cellphone channelers that we've seen in the past. Essentially, the device seamlessly "transfers your Skype calls to your mobile phone without the use of SkypeOut credits," as it connects to your mobile via an internal SIM card. As predicted, it interfaces with your PC via plain ole USB, and users can not only ensure that they never miss an incoming Skype call, but they can phone up other Skype users around the globe just by using minutes from their mobile plan. The device can even redirect calls to five different handsets, but considering the £185.99 ($373) pricetag required for such a luxury, only the heaviest of yappers need apply. Click on through for a shot of the rear. [Via Wired]

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MIT researchers tout "practical" holographic video

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A team of researchers at MIT seem to think they've finally come up with a way to make holographic video a bit more practical for everyday use, touting the new system they've developed as a possible display for PCs and video game consoles, Technology Review reports. According to the researchers, the display will be small enough to fit in an entertainment center when finished, boast a resolution as good as a standard analog television, and only cost a "couple of hundred dollars." Much of that increased practicality comes from the fact that this latest version, dubbed the Mark III, simply relies on a standard graphics processor instead of specialized hardware. The researchers also managed to streamline some of the other optical hardware, which they say made the previous incarnations as big as a dining-room table. It apparently still has a few drawbacks, however, with it currently only able to display monochromatic holograms in a space about the size of a Rubik's Cube. They insist that's only a temporary problem though, and promise that the next model will be comparable in size to a desktop monitor and boast a full range of color. No word if there'll also be a port of everybody's favorite quasi-holographic arcade game, Time Traveler, to go along with it, but we can hope.

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Friday, April 27, 2007

Convert Long, Complicated Web Addresses Into Small URLs

create short tiny url Here's a quick review of the most popular URL redirection servicesto help you pick the right one for your job. TinyURL.com - This is a name synonymous with URL redirection with maximum number of users. You can drag their bookmarklet in your browser and create short URLs in a single click. The advantage is that users can preview the web address embedded in TinyURL before visiting the actual website. With Preview, Without Preview urlTea.com - A relatively new but promising URL shortening service. It allows you to describe or annotate the destination website in the short URL itself. For instance, http://urltea.com/g20 is the same as http://urltea.com/g20?my_site but the latter makes more sense to the visitor. And you can also use Google Talk or Yahoo! Messenger to create short URLs through a buddy called teabot@urltea.com. short website address SnipURL.com - With SnipURL, you can choose your own web address with some meaningful text instead of using random addresses generated by tinyurl.com. This will help visitors get an idea of what they are about to click. It is possible to modify the underlying URL without changing the existing SnipURL address. Best of all, SnipURL can generate private URLs that can only be accessed after providing a password. Shorl.com - This may well be the favorite URL redirect service for bloggers and website owners since it provides usage statistics of your short URLs (i.e., Number of Hits). When a user clicks a URL created by shorl.com, he is shown the web address of the destination for few seconds before the actual redirection. Now that's an intelligent design since users can opt-out even after clicking the short URL. Nothing deceptive about it. Final Thoughts - Shorl.com gives control in the hands of the user and automatically increases the level of trust. SnipURL gives you click through stats and more control over URL text so that makes it my favorite URL shortening service. [I personally use these services for sharing hyperlinks in my newspaper columns that are published in the Hindustan Times and Financial Express.]

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ScratchYourself: Viral Sweepstakes That Brands Could Love

A new service called ScratchYourself came to our attention today. It’s a fairly simple Flash application that lets users upload an image and build a lottery-style scratch card from it. During the beta period people have a chance to win some very limited cash prizes that total $90 or so per day across all winners.

Once a scratch card has been created, users can email it to friends or embed it on their site. I created a quick scratch card with our logo and have embedded it below.

What interests me more than the front end, which would easily be duplicated, is the business model and payments infrastructure they’ve put in place. Users have an incentive to create and embed these on their blogs, MySpace page, etc.: if you create a scratchcard and someone wins a prize, you get the same prize as the creator of the card. Prizes are awarded, at the winner’s choice, via paypal, mailed check or amazon gift certificate.

The company’s business model is to attract advertisers to sponsor prizes (cash, products, coupons). If ScratchYourself turns out to be trustworthy and can circumnavigate the rather complicated federal and state regulations governing sweepstakes, brands could be attracted to this. You get a good long look at the image underneath the scratch area, which is more than can be said for most banner advertising. And publishers will like the ability to win the same prizes as their readers.

Shycast and Bix (acquired by Yahoo) are also experimenting with brand based contests, albeit through video (and Shycast is also a social network).

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