Parasitic Business Models

    April 25, 2007

As more large trusted publishers launch ad networks will this force Google to rethink their authority heavy algorithms and ad quality scores that benefit these growing arbitrage plays? Or is Google promoting many small ad networks to spread the portion of the pie that they don’t control really thin?

Shopping sites like, Yahoo! Shopping, BizRate, and NextTag already dominate Google’s organic search results and paid listings. just announced their contextual ad network. just had a solid quarter, and is selling ads directly via ClickRiver.

Why are ads on Wikipedia unthinkable? Because Jimmy Wales is gathering authority and content, waiting for his search project to launch. Don’t be surprised if the Wikipedia contains ads soon after Wikisaria’s ad program launches.

How many ad networks will online marketers be willing to sign up for?

If you think the web is full of spam now, wait until you see what it looks like when all the large brands put ads in the content, and when shady publishers have a dozen different distributed ad networks to chose from.