Opportunities For Entrepreneurs, New Venture Intermediaries

If AdSense is in decline, that leaves open a big market for entrepreneurs. Publishing is not a winner-take-all market. Google will not control all online inventory. Advertisers and their agencies like choice. And users click on whatever is relevant.

We see two plays in this environment:

1. Match relevance. Match relevance means parsing content to deliver more relevant ads. This is easy to say and hard to do. A lot of smart semantic tech ventures are focusing on this problem. This is smarter use of search technology than Quixotic tilting at Google's search bar dominance.
2. Connecting CPM to CPA. This is another hard problem to solve but promises a huge payoff for the winner. Publishers like selling CPM (cost per mille): it is easy for them, and the burden of performing lies with the advertiser. Advertisers, on the other hand, like CPA (cost per action or acquisition): it is easy for them, and the burden of performing lies with the publisher. Both parties look at the CPC (cost per click), because that is trackable from both sides of the transaction. But CPC is just a proxy for what each really wants: CPM and CPA, respectively. Any venture that brings publishers and advertisers together with a deal that satisfies the needs of both will do very well. There is a huge opportunity here. High-quality websites that really engage with their audience will certainly do well by CPA metrics, but the solution will have to be really easy to implement.

Los ingresos que Google obtiene por AdSense parecen estar bajando. AdSense es una caja negra, y los medios no saben qué pastel se queda Google. Si no contenta a los tres jugadores en curso: anunciantes, medios y usuarios, se abre un mundo de posibilidades aquí. Mucha gente debe estar frotándose las manos, ¿o no?