Thursday, April 10, 2008

'Old' Media Struggles With Vertical Networks

Vertical networks that aggregate content around a subject could be the next evolution of media company if done right.

Peyman Nilforoush, who runs the NetShelter Technology Media network, has insightful analysis of the highs and lows of traditional media companies running vertical networks. While Forbes and many others have entered the fray recently, ESPN and the Washington Post are backing away from running vertical ad networks.

Traditional media companies with large audiences have a potential conflict of interest in promoting other websites from which they make a smaller return than their own content. This isn't an impossible hurdle -- it takes a commitment from the management and understanding of the long term benefits of selling ads across a variety of sites. The ad sales folks need to understand and get past this challenge so that all sites in the network get fair representation.

Vertical networks need to think differently about advertising than traditional media company (the network comes first), and that's not something that everyone can do.

(Disclosure: my rich media company works with Washington Post partner network Adify.)

Posted By John Gartner at 08:58 AM
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