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Tuesday, October 02, 2007

Mochila Matches Ads to Content

Media distribution startup Mochila correctly believes that to a great extent Web content is a commodity that should be "sold" on an open market by matching it up with relevant content. The model is simple -- aggregate related content and create distribution widgets that dynamically insert ads.

The company has signed up an impressive lot of content partners including Reuters, the AP, Hearst, MSNDBC. Belo, and most recently user-generated content site Citizen Image. On the advertising side Mochila has partnered with Clickability, Tacoda and Quigo.

The strength of this model is wide distribution, extensive ad inventory, and automation. The company seems to be competing with vertical ad network companies such as Adify (with whom my my company partners) that attempt to offer deeper content and generate higher CPMs. The limitation in Mochila's model is that in giving up your ad sales to a third-party you'll never get the same rates for your content as if you hire your own sales person. Wire feeds do make sense as commodities since dozens of services will have similar stories about breaking news, and user generated photos won't be far behind.

Today we are still in the early stages of figuring out the distributed content/ad model, but someone will come up with the right mix.

Posted By John Gartner at 09:38 AM
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