X Is Dead
On Friday, Reddit made an announcement that it would be donating ten percent of its 2014 ad revenue to charity.
According to a blog post by Reddit CEO Yishan Wong, Reddit will calculate its ad revenue at the end of the year, and then let Redditors nominate and vote on the non-profits they’d most like to support. Once the community has determined its top ten non-profits — and yes, Reddit reserves the right to ignore all suggestions from trolls, the post says — the site will distribute the funds proportionally among the winning charities, based on how many votes each one received.
Working in the news industry, Betabeat knows something about this. Even in this Day and Age, advertisers would drop $20,000 on a magazine or newspaper print ad buy and expect an ad on the web to be bundled in, which never made any sense to this reporter. Online ads offer better metrics, interactivity, more options for design aspects such as sizing color, and, obviously, link back to an advertiser’s site. But the trend seems finally to be reversing itself. Pandora ad rates are now comparable to commercial radio, and today The Wrap reports Politico is making as much money online as in print. Yes, early adopter readers, that is news.
When Google plunked down a $400 million offer for New York’s AdMeld, a lot of local venture folks were surprised at the price.
“They’ve got some good growth, but nothing that would justify this kind of premium,” was how an ad-tech investor put it Betabeat. To date AdMeld had raised just $30 million.
But a chat yesterday shed some light on the situation. “We are getting a ton of pitches from former Wall Street quants looking to start companies that apply the principles of high frequency trading to the emerging market for real-time bidding across online ads,” said Bryan Birsic, a senior associate at Village Ventures.