Scalable Business Models

Those of you who have happened to be my superiors throughout my career, or even close peers, are fully aware of my entrepreneurial itch. There are some points in your professional life when you identify a soaring insufficiency in the market – and you need to act upon it for a variety of reasons: The business opportunity, the shaping of an industry, and just making life more efficient. Takes me back to my first steps in the online media industry, when we were selling advertising with rough estimates on availabilities, no historical data, and optimizing campaigns across a portfolio with over 70% reach into the UK´s online population using spreadsheets. Those were the early days, and fortunately the model has improved and is now leveraging proper technology. Most times it is the simple things that make an impact.

Take the Rubicon Project as an example – more and more inventory made available daily, by changing navigation habits, increasing online audiences, older/newer phenomena like blogs, social networks, picture galleries, video, etc. All of these web brands invest heavily in monetizing, sell integration and spend their time working out how to best leverage the specifics of their platform to best provide opportunities for advertisers. This helps reap in the heavy brand dollars, but in practice takes about 20% of all inventory…

Which means 80% of inventory is available, unsold, un optimized, and is a massive inefficiency in the online ad market. Fortunately technology such as the Rubicon Project is giving networks and sales houses across the globe the tools to efficiently optimize inventory, and hence taking a giant step in growing the online ad market. They are doing what we used to do with spreadsheets – just a whole lot better, faster and at a ridiculous pace. At the time of this post, 348,445,595,138 ads optimized.