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Dogster's Risky Bet Against Ad Networks
Posted Nov 28, 2008 01:00pm EST by Sarah Lacy in Internet, Media, Venture Capital, M and A, IPOsBack in 2003, when many Web 2.0 companies were getting their start, they had a big leg up that didn't exist in the late 1990s: Ad networks. Things as simple as Google AdSense or John Battelle's Federated Media gave bloggers and even larger sites like YouTube and Digg a way to get instant revenues, without having to hire and commit to costly sales forces and infrastructure.
Tiny Dogster went another route. It tried all the ad networks and realized that CPMs in the 20-cent range weren't going to sustain a business -- especially with ad networks taking as much as 50% of the profits. Dogster founder and CEO Ted Rheingold didn't suddenly saw ad networks as the expensive proposition -- not the cost saver. It's an insight a lot of the mainstream media is only now discovering the hard way.
Now, in 2008, Dogster is heading into a downturn with strong relationships with advertising agencies and a bigger pipeline of business than it had a year ago. "This is still a relationship business," he says. "And once we have those relationships, we get more calls." Watch the video to hear more of Rheingold's take on where niche online advertising is going.
13 Comments
__A_YAHOO_USER__ - Friday November 28, 2008 06:12PM EST
Ted Rheingold is partially blind did you know that ...?
__A_YAHOO_USER__ - Sunday November 30, 2008 04:07AM EST
Rotwiller is a good dog but very risky....I prepare Labrador very clever dog, always loyal but safe too.....That is the good bet among dog..... If Dogster has another route in his way about Google.......He alone to blame....If He make it good the better.... Means the business is good....To be honest.It is not my business......But I like Labrador as my pet in this climate especially when the market is down.....I really prepareLabrador because it is not hot - headed.... Dod Dogster behave like Labrador a very clever,loyal and safe too in connection to Google?
ANTHONY - Saturday November 29, 2008 06:22PM EST
"COME HERE"CMON ,ITS TIME FOR YOUR TAINTED DOG FOOD WITH "MELAMINE" AND GOD KNOWS WHAT ELSE ,CMON ,AND LOOK THE BABY DRINKS HER FORMULA "THE MELAMINE "WONT HURT HER , CMON VIOXX IS A FINE DRUG,, EAT YOUR SPINACH TODAY,, HAVE SOME RAW ONIONS ON YOUR FOOD,, YUMMY..,HERE HAVE SOME TOBACCO,, ITS FDA APPROVED..."IF IT WASANT APPROVED ,"HELL ANY FOOL KNOWS "//..."THEY COULDNT SELL IT IF IT WASANT APPROVED,, AND HELL THEIR CONCERNED WITH ,HEALTH, THE PUBLIC GOOD""ITS NOT JUST ABOUT MONEY AND TAXES"..BOY WHAT A JERK YOU ARE...
MARTIN - Monday December 01, 2008 01:13AM EST
In these economic hard times, dogs (pets) are being left behind in homes that have been foreclosed on. Why doesn't someone come up with a way to take care of these animals. The pets, not the people!
- Wednesday February 25, 2009 03:36PM EST
I think Dogster has an interesting model to follow. they are right, if you have a high traffic site, going to the ad networks, you are basically short changing yourself, just checked out their site, they know what they are doing, its a power site! Van from St. Louis
TurboHaul Container Systems - Monday December 01, 2008 10:14AM EST
Well not knowing what this site is or does before this seeing this interview, I decided to visit and find out. What i discovered was a strong belief our economy will bounce back for the fact that there could EVER be this much concern over pet crap in this country. Things are bleak, to be sure, but as long as there is a thriving commerce based on this degree of self-indulgence I won't worry. And yes my wife and kids and i do own a black lab that loves us and we love him... but he is JUST A DOG and he knows it.
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__A_YAHOO_USER__ - Friday November 28, 2008 02:23PM EST
No idea....sorry...all yours....