ONLINE CONTENT EXCLUSIVE: Contextual Syndication
New syndication model comes with built in revenue stream
Paola Di Maio
7 May 2001, 9 am GMT
One of the great puzzles that the Internet industry has been trying to solve over the last few years is how online publishers can materialise revenues. Sure there must be ways.
Vibrant Media have been working at the concept of ‘contextual syndication’ rather secretly for a few months. They take quality content and match it with relevant advertising. Advertisers pay Vibrant Media per thousands impressions, who pay a per view share to content providers.
The idea is straightforward, and it displays the startling simplicity typical of winning business concepts. How come nobody thought about this before?
Their ‘contextual engine’, powered by Semio with some Autonomy components, allows for the aggregation and categorization of the content by Vibrant Media, who are committed to sign up branded, reputable online publishers.
Thanks to a partnership with Adtech, the technology then matches the most relevant adverts, BT and Gateway have been among the first to sign up.
The revenue share to content providers varies from 30 to 50 percent depending on size of partnership.
Then webmasters who need content can pick up the code with a few clicks and stick out on their sites in no time.
“Our model is based on the principle of mutual advantage” explains Doug Stevenson, CEO
“There are clear benefits for all those who take part. To date, online advertising has been unsuccessful mainly because of the difficulties in targeting online readers with relevant advertising. Without any marketing effort, we have registered 25 websites, including Evesham Micros www.evesham.com) and Jobs-at.com (www.itjobs-at.com).”
“Based on keywords and concepts, the content is categorised and matched to the most relevant banner held by our system, should there be several banners displaying the same relevance to an article, they will be rotated. Only one banner ad is displayed per article” adds Craig Gooding, CCO.
Doug and Craig are both byproducts of AOL Europe, and last November were backed by Gorillapark. They received 1 Million Euros in cash plus services on top.
Tim Finn, Content Director, takes the credit for signing up big names from day one: IDG, Vnunet and ComputerWire are the first content providers that make their content available to Vibrant Media “Publishers seem to welcome our model, and most of them, especially those executives who have been exposed to business development in an online environment get really excited”
Initially they are addressing the IT content and advertising segments
“Because IT advertising is a strong sector” says Tim “Finance and General Business will be next”
Vibrant Media prospects look promising.
Its model may be the answer to many questions about online content profitability.
It also bypasses the perplexity arising from the big question: how can online content maintain integrity and independence from advertising? From what content-wire has observed to date the only relationship between content providers and advertisers is the match given by keyword search and semantic context.
“Our customers understand that content is key to audience acquisition, retention and experience, but it is expensive and it requires expertise that firms do not have. Our solution removes this problem; its content is served in full article form directly into a customer's site, replicating the host sites look and feel” say Vibrant Media execs, whose initial target user are typically commercial enterprises who do not – nor intend to – have an online editor
“We think there is a lot of opportunity within the SME market”
http://www.vibrantmedia.com
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