Posts tagged ‘duopoly’


Online publishing: how the players we dealt with changed in 2016

12.01.2017


Above: Brave Bison’s predecessor, Rightster, left much to be desired in how it dealt with publishers, while investment commentators had concerns, too.

Twenty-sixteen had some strange developments on the publishing front.
   First, we noticed Alexa rankings for a lot of sites changed. Facebook itself went from second to third, where it has stayed. Our own sites dropped as well, across the board, even though our own stats showed that traffic was pretty much where it was. In Autocade’s case, it was rising quickly.
   We checked, and Alexa had announced that it had increased its panel again in 2016. There was an announcement about this in 2014, but things improved even more greatly during the last Gregorian calendar year, specifically in April. (April 2016, it seems, was a huge month of change: read on.) This means Alexa began sampling more people to get a more accurate picture. Given that Facebook fell as well as us, then we drew the conclusion that the new panel must include audiences in China and other non-Anglophone places. It makes sense: Alexa is a global service and should take global data points. Never mind that we’ve suffered as a result, we actually agree with this approach. And we’re taking steps in 2017 to look at capturing extra traffic with our content.
   Alexa, when we approached them, said it could not comment about the origins of the panellists. Again, fair enough. We’ve made an educated guess and will work accordingly.
   Secondly, there were two ad networks whose advertising disappeared off our sites. The first, Gorilla Nation, started dropping off long before 2016. In 2015, we asked why and were asked to fill out some form relating to Google ads. Anyone who’s followed this blog will know why that was unpalatable to us—and we want to make sure our readers don’t fall victim to Google’s snooping, either. I’m not saying that Google ads don’t appear at all—it’s the largest advertising network in the world, and its tentacles are everywhere—but if I can avoid opening our properties up to Google willingly, then I’ll do so.
   It’s a shame because we’ve worked exceedingly well with Gorilla Nation and found them very professional.
   We have, sadly, entered an era where—as found by my friend and colleague Bill Shepherd—online advertising is controlled by a duopoly. In The New York Times, April 18, 2016 (italics added): ‘Advertisers adjusted spending accordingly. In the first quarter of 2016, 85 cents of every new dollar spent in online advertising will go to Google or Facebook, said Brian Nowak, a Morgan Stanley analyst.’ I don’t think this is fair, as they’re not the ones generating the content. Google has also managed to game services like Adblock Plus: they’ve paid for their ads not to be blocked. (Better has more information on why certain ad blockers are ineffective.) It’s not difficult to see why native advertising has increased, and this is generally more favourable to the publisher. In 2017, it’s time to build up the advertising side again: two years ago we already saw quarters where online overtook print in terms of ad revenue.
   Burst Media’s ads also disappeared, and we had been working with them since 1998. Now called Rhythm One, they responded, ‘We recently migrated to a new platform and your account was flagged by an automated process as part of that. All that being said—we can absolutely get you live again.’ That was April. I added one of their team to Skype, as requested, but we never connected—the helpful staff member wasn’t around when I called in. Again, a bit of a shame. As I wrote this blog post, I sent another message just to see if we could deal with the matter via email rather than real-time on Skype.
   At least this wasn’t a unilateral cessation of a business arrangement, which Rightster sprung on us without notice in April. Rightster’s Christos Constantinou wrote, ‘It is with regret that we inform you that from yesterday we ceased providing video content services to your account.’ This wasn’t the first change Rightster sprung on us—its code had changed in the past, leaving big gaps in our online layouts—and soon after, everyone there clammed up, despite an initial email from another Rightster staffer that feigned surprise at what had happened. Mr Constantinou never picked up phone calls made since that point, and we couldn’t get an answer out of them. No breaches of their terms and conditions were ever made by us.
   We were only interested in a small handful of their video sources anyway, all of whom exist on other platforms, so one would have thought that it was to Rightster’s advantage to continue working with a well respected brand (Lucire). A bit of digging discovered that the firm was not in good shape: a pre-tax loss in the first half of 2015 of £11·5 million, with shares trading in October of that year at 10·50p per share, down from its float price of 60p. That year, it was forecast by Share Prophets that things would only get worse for the firm, and they were proved right within months. Not long after ceasing to work with us (and presumably others), Rightster became Brave Bison Group, restructured, and became a ‘social video broadcaster’, but it was still burning cash (to the tune of £1·3 million, according to the same website in July 2016).
   Gorilla Nation and Burst’s slots have largely been replaced by other networks as well as ads secured in-house, while Rightster effectively did us a favour, though its opaqueness didn’t help. In fact, when they didn’t answer questions, it was only natural to surf online to investigate what was going on. Initially, there was some negative stuff about Burst, though my concerns were put to rest when they emailed me back. With Rightster, there was no such solace: finding all the news about the firm being a lemon confirmed to me that we were actually very lucky to have them farewell us.
   We revived an old player that we used, through Springboard, itself linked to Gorilla Nation, so we’re still serving advertising from them, just in a different form. Video content has not vanished from the Lucire sites, for those who are interested in it.
   How a company behaves can be linked to how well it ultimately performs, and what it’s worth. Given our treatment by Rightster, it wasn’t that surprising to learn that something was rotten in Denmark (or London). Maybe that first staff member was genuinely surprised, with employees not being told about their company running out of money. And unless things have truly changed within, it could well continue to function dysfunctionally, which will give those AIM columnists more ammunition.

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