What is Google Reader Revenue Manager and How Does It Work?

In the evolving landscape of digital media, publishers are constantly seeking innovative ways to monetize their content. One such tool that has garnered significant attention is Google's Reader Revenue Manager. This comprehensive guide will delve into what Google Reader Revenue Manager is and how it works, helping you understand its potential to boost your revenue streams.

What is Google Reader Revenue Manager?

Why Do Some Google Ads Look Like Spyware?

In the digital age, advertisements are ubiquitous, appearing on almost every website we visit. Google Ads, one of the most popular online advertising platforms, plays a significant role in this landscape. However, a recurring issue for many users is that some Google ads can look alarmingly similar to spyware. This perception arises from a combination of factors, including ad design, deceptive tactics, and the nature of the advertised content. Let’s explore these factors in detail to understand why some Google ads resemble spyware.

Why Is Digital Advertising So Hard Understand?

Online advertising can be challenging to understand for several reasons:

Great Web Services Need Great Distribution

Great web services indeed require effective distribution to reach and engage a wide user base. Distribution plays a crucial role in maximizing the visibility, adoption, and success of web services. Here are some key factors to consider when it comes to distribution:

Direct vs. Automated Ad Network Sales Growth

Direct ad network sales and automated ad network sales (programmatic advertising) are two different approaches to selling and buying advertising inventory. Here's a comparison of the two:

Google Ad Manager Will Make Publishers More Money

Google Ad Manager is a comprehensive ad management platform that provides publishers with tools to monetize their digital content effectively. While using Google Ad Manager can potentially help publishers generate more revenue, several factors contribute to the overall financial success of publishers using the platform:

Could Google Become The Next Wireless Giant?

Google already has a significant presence in the wireless industry through its subsidiary, Google Fi. Google Fi is a mobile virtual network operator (MVNO) that provides wireless services to customers by leveraging the infrastructure of major cellular networks such as T-Mobile, Sprint (now part of T-Mobile), and US Cellular.

Opportunities Created By Google Android

Google Android, as one of the most widely used mobile operating systems globally, presents various opportunities for businesses and developers. Here are some key opportunities created by Google Android:

Google Shutting Down Fusion Tables is a Huge Mistake

Reasons Why Google Shutting Fusion Tables is a Huge Mistake

Video Overview of Syndicated Maps Public Safety Data Marketplace

Google Finally Allows Fair Auction for Header Bidding Ad Networks

Google Removes Its 'Last-Look' Auction Advantage. The "last-look" advantage Google’s ad server gave to Google's ad exchange so bothered publishers and exchanges that it gave rise to header bidding. As of this week, that advantage is no more!

Previously, AdX would wait for all those other exchanges to submit their bids, and then give itself a chance to outbid the winner. So if Google’s exchange had two bids of $1 and $5, it would be able to beat a $4 bid from an outside exchange. Under the new auction rules, it would submit a bid of $1 (the second price) and lose the auction.

Here's how the programmatic auction will work: All EBDA exchange participants – including Index Exchange, Rubicon Project, PubMatic, Sovrn, Smaato and Gamut – submit their final bids. The DoubleClick AdExchange (AdX) also submits its final bid. And the best price wins.   Read more.

Rebranding to Syndicated Maps

Facebook's IPO Valuation Should Be $25B

I would like to take you through a simple math equation for determining the fair value of Facebook before its IPO filing tomorrow without comparing growth metrics.  Here are my assumptions when comparing Facebook, while using Google as the benchmark.  Google's annual revenue is $37 billion with a market capitalization of $188 billion currently as of January 31, 2012.

Google's annual display ad revenue from Double Click is only $5 billion + they have $32 billion of additional revenue sources.  That means if Google only had the display ad business similar to Facebook their valuation would be 1/8 or less or around $25B.  Here is the scary part when you start to look at Facebook's proposed IPO valuation of $100B with 88% of its revenue coming from one source.

Facebook simple valuation equation based on current estimates:

Google Market Cap = $188B at $580 per share
Google Total Annual Revenue = $37B
Google Display Ad Revenue = $5B

Facebook Market Cap = $100B
Facebook Total Annual Revenue = $5
Facebook Display Ad Revenue = $4.8
Facebook Fair Value Equation = ($37 / $5 = .135) x $188 = $25B

The latest news sources reported that Facebook's annual display ad revenues were around $3.8B in 2011 and so I will assume this revenue number has grown to $5B in 2012.  $5B in annual revenue for Facebook is 1/8 the size of Google's at $37B.  Facebook has 88% of its revenue coming from display ads only which is not very diversified if you ask me.  Keep in mind this does not factor in growth rates but they cannot be that dramatic to change my valuation estimates. 

Are Groupon Coupons Getting Spammy?

The latest Groupon coupon fad reminds me of the mailing list spam days back in 1999.  Back in the day companies like Yahoo couldn't get their hands on enough lists of emails and would use these lists to pump out advertising offers left and right.  Eventually consumers got smart and had to use spam blockers and finally the Government required companies to offer opt-in email programs.  Groupon is not much different, however, this time they give you a sense of urgency by saying that inventory is limited.  Not only do most offers claim to limit the inventory but they often give you 50% off for a limited time.  Yes, it seems like a good short term promotional tool but how long will it last and what will it do for customer loyalty?

Will Groupon become a victim of their own success always chasing the next deal and lose customer support?  I think coupons should be scare commodity and not available to everyone.  If everyone has a coupon it defeats the purpose of pricing anything and creates a sense of dishonesty amongst your loyal customer base.  I think at the end of the day when this local coupon bubble pops the winners will simply be just good at local display advertising.  I think Google gets this as well and will will likely start see display ads targeted on mobile phones that show offers like this.

Groupon turned down an offer from Google to buy them for $6 billion dollars apparently and it looks like they are headed for an IPO.  I think this is a blessing in disguise for Google and they should be thankful that this did not work out.  The competition in the coupon space is furious and there are literary thousands of Groupon clones that do the same thing.   When Groupon first received funding and their valuation was north of $100M I said it was a great investor ponzi scheme and still think this.  Its a big house of hards that is only held up by the huge pile of cash they have been able to raise.  Its also not surprising to see them acquiring several companies in order to try and consolidate their competition.  I also wouldn't be surprise to see some more controversy surrounding this company get publicized before it tries to go public.  Groupon has lots of "skeletons in the closet" that will come out and at the end of the day the winners will ultimately be small niche local companies like Boomstreet who will be successful.   

Did Google's Failed Acquisition of Groupon Prompt a CEO Change?

Did Eric Schmidt fail to consummate an important acquisition of Groupon that prompted the change?  I personally am happy that Google did not buy Groupon because I think the company is very spammy.  However, the category is growing quickly and Wallstreet doesn't wait around for excuses of why the advertising giant does not have a product in the category of group buying and coupons for local businesses.

Or is it more about control and does Larry Page want more control of the company to make more acquisitions?  Is Facebook's increased threat of taking market share from the search giant prompting some paranoia.  The war is now on between company founders Mark Zuckerberg of Facebook and Larry Page of Google.   It will be interesting to see how each will handle the growing mobile advertising industry and Google has a huge head start.  It's kind of scary to see Apple and Google CEO have leadership issues as they are the two of the largest technology companies. 

Southern California Ad Networks & Publishers

A stealth internet advertising/publishing renaissance is quietly happening in Southern California 10 years after the dot com bubble burst. Any investor who tells you it's hard to build management teams and big companies in Southern California is disconnected from the real markets. Southern California still lacks the big VC and Private Equity funds like Silicon Valley and Boston but entrepreneurs are scrappy here as you see by the list below. Most of these companies bootstrapped themselves and bypassed local SoCal VC firms raising larger rounds with Silicon Valley-based mega VC funds after achieving significant revenue growth.

These digital media companies will likely have between $10-250M in annual revenue in 2009 and are great M&A / IPO candidates. The combined list of companies has raised in aggregate of well over $1B of capital and employs 2000+ people in Southern California. These companies will ultimately spawn new entrepreneurs when liquidity is realized for shareholders. Soon Southern California just might have had a sustainable ecosystem of investors and entrepreneurs to compete with regions like Silicon Valley and Boston. This list is ranked in order of capital raised from investors. SoCalTech.com and Crunchbase.com were the sources of investment information.  

Demandmedia.com - 1333 Second Street, Suite 100 Santa Monica CA 90401 - Owns and operates 1) a network of 65 destination websites 2) a content and social media marketplace connecting content creators, users, and publishers on a mass scale, and 3) the second-largest domain name registrar. Most recently, Demand Media launched 

Livestrong.com in partnership with the Lance Armstrong Foundation.Total Funding: $355.00M Investors: 3i Ventures Generation Partners Goldman Sachs Lance Armstrong Foundation Oak Investment Partners Spectrum Equity Investors

Oversee.net - 515 South Flower Street, Suite 4400 Los Angeles CA 90017 - Operates an advertising network, services for parked domain name holders, and a series of consumer-focused websites. The company uses search engine optimization and other techniques to increase revenue from parked domains and other websites. Total Funding: $150M Investors: Oak Hill Capital Partners

Specificmedia.com 4 Park Plaza Ste. 1900 Irvine CA 92614  is developing technology that helps online advertisers target audiences through advanced behavioral, contextual, geographic and demographic technologies. 200M Monthly Total Funding: $110M Investors: Enterprise Partners, Francisco Partners, Shepherd Ventures

Hulu.com 2312 W. Olympic Blvd., Los Angeles, CA 90065 is currently the third-largest video provider on the web. The site focuses exclusively on professional content and does not take on YouTube directly as a viral video destination. Hulu videos are played in their own embeddable branded player. Content from at least a dozen TV networks and two major film studios is promised. Initial distribution partners include AOL, Comcast, MSN, MySpace and Yahoo. Total Funding $100M Investors: Providence Equity Partners, Disney, Fox.

Adconion.com1322 3rd Street Promenade, 2nd Level Santa Monica, CA 90401 Performance-driven online advertising and content syndication network. Investors: Index Ventures & Wellington Partners. Total Funding: $80M

Veoh.com 10180 Telesis Court Suite, San Diego, CA, 92121 is an Internet TV service that gives viewers the power to easily discover, watch, and personalize their online viewing experience. Total Funding: $69.8M Investors: Intel, Adobe, Shelter, Spark, Goldman Sachs, Time Warner

Reachlocal.com 21700 Oxnard Street, Suite 1600, Woodland Hills CA 91367 Brings order to the fragmented local Internet by connecting advertisers, publishers, and creative solutions providers together on one platform. Wherever customers are online, ReachLocal helps businesses find them with the broadest reach of local digital media, a dedicated force of local Internet Marketing Consultants, and technology that continually optimizes results. Total Funding: $67M Investors: VantagePoint Venture Partners, Rho Capital Ventures, Galleon Special Opportunities Partners, LP

Adknowledge.com 3003 Expositio 1st Floor Santa Monica CA, 90404, (Headquartered in Kansas City, Mo) Performance-based advertising network that utilizes powerful predictive technology to connect advertisers with consumers across multiple channels, including email, search, and social networks. Investors: Technology Crossover Ventures. Total Funding: $66.3M

Gorillanation.com 5140 W Goldleaf Circle Floor 3 Los Angeles CA 90056 An online ad sales rep firm represents over 500 leading web publishers and offers integrated media and promotional programs to Fortune 500 brand advertisers. Total Funding: $50M Investors: Great Hill Partners

Rubiconproject.com 1925 S. Bundy Drive Los Angeles CA 90025 - Yield Management Optimization platform, REVV for Publishers™, is engineered to accelerate revenue for premium Web publishers. Total Funding: $42M Investors: Clearstone Venture Partners, Mayfield Fund, IDG Ventures and GE/NBC Universal's Peacock Equity Fund

Openx.com Pasadena CA - Ad server for web publishers. OpenX offers a vast community of publishers comprehensive, customizable and free-to-use ad serving technology. The OpenX ad server empowers a community of more than 150,000 websites across the Internet with the ability to take control of their ads and maximize their ad revenue and relevance. The OpenX ad server products are translated into 25 languages, used in more than 100 countries around the world, and serve more than 300 billion ads each month.. Total Funding: $31M Investors: Accel Partners DAG Ventures First Round Capital Index Ventures Mangrove Capital Partners O'Reilly AlphaTech Ventures Miller, Jonathan

Break.com 311 North Robertson Dr. Beverly Hills CA 90211 - Break Media is the Internet’s premier entertainment community for men. Break Media consists of wholly-owned branded properties such as Break.com, Cage Potato, Chickipedia, Holy Taco, Wall Street Fighter, Screen Junkies and All Left Turns as well as a publisher network, the Break Media Network, that counts over 95 member sites. Total Funding: $21.4M Investors: Lions Gate Entertainment

Mahalo.com 902 Colorado Avenue Santa Monica CA 90401 - Human-powered search engine where results are generated non-algorithmically by a team of profile builders who create pages for search terms. Mahalo includes the most appropriate hand found links and information for about 10,000 unique queries. Total Funding: $21M Investors: Sequoia

Hydranetwork.com 8800 Wilshire Blvd, 2nd Floor Beverly Hills CA 90211 Performance-based ad network that distributes cost-per-acquisition (CPA) and cost-per-lead (CPL) campaigns through online affiliates. Named by Inc 500 as the fastest-growing advertising company in the U.S. in 2009. Total Funding: Unknown Investors: Unknown

Connexuscorp.com 2141 Rosecrans Avenue, Suite 2020 El Segundo CA 90245 Connexus is an online marketer and pay-for-performance ad network. Result of the merger of Vendare Media and Netblue. Investors: Insight Venture Partners & Oak Investment Partners Total Funding: Unknown

Media Optimization Firms Are Red Hot In Southern California in 2009

Media optimization is starting to become a headline buzz word in 2009 as the recession drags into the near year. Optimization is one solution to cutting costs that will virtually guarantee a return on your advertising investment if executed properly. If you are a savvy agency, advertiser or publisher and you are not using a platform or service to optimize your paid search, display and landing pages, you are getting behind the curve. Advertisers are demanding accountability and performance in this economic downturn and are increasingly moving toward performance based arrangements or CPA deals. Why, because it hedges some of the risk and the publisher or agency is required to produce results. The old model of buying impressions or clicks and hoping for conversions to sales is GONE for the sophisticated online marketing companies. Here are 4 companies using optimization technology to build competitive advantages in their respective spaces:

Magnify360 - Landing page optimization using predictive data analysis

Adisn - Display advertising optimization for advertisers

Rubicon Project - Publisher ad network optimization

Oversee.net – Domain parking ad network optimization

Stay tuned for a list of large publisher advertising networks in Southern California that I am gathering information on: Demand Media, Gorilla Nation, Specific Media, Tsavo.