Revver For Sale Helps Prove My Point

I’m thrilled that Revver sends my video podcasting friends cash. Heck, I’m due a $50 check from them one day soon. But, and I’ve said this before, third party random ad inserts on your new media is not anything to bank on. Get it while you can, but don’t build a business plan around it.

And it looks like Revver is hoping that someone will buy their million dollar debt (fun thing is – company comes with it) for $300 to $500k. Ouch.

There is this desire in so many to fully embrace the Kevin Costner model of revenue generation (if you build it, they will come) but these same people seem to forget 2 things: 1) He’s an actor and 2) he’s the same actor who brought us Waterworld and The Postman. Don’t bank on this guy, please.

The random 3rd party insertion model doesn’t work. It never has, it never will. People might throw some money at it (and some of that might make it to the content producers) but this model makes as much sense as dogfood via UPS and some of the other "Web 1.0" models we now laugh at.

If your only model for revenue generation in new media is ad insertion I recommend 2 things (unless of course your business plan is to flip the company before anyone is smarter for it): 1) Make sure you got an incredible sales machine in place and 2) match the marketing message directly to your audience as that is the true value of what you’ve got (not inventory to slap some random ads against).

I’m sorry Revver is having problems. I wish it weren’t so but … the market has spoken and is speaking … this model doesn’t work.

Let’s find one that does.

p.s., When the writer’s strike is over and the writers get a (well deserved) piece of the online action for their shows, you can kiss the 1 commercial per break model goodbye. It will return to the 42 minutes of content and 18 minutes (or more) of ads to pay for it model we’ve learned to hate so much.

p.p.s., We might be lucky enough to where someone will come up with an engine that really targets the ads to the audience (hint, keywords in the meta data ain’t enough). If / when that happens, the game changes … just don’t expect that tech to come cheap.

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