Tuesday, March 09, 2010

Outside.in and Datasphere on Collision Course

Outside.in and Datasphere are on a collision course. Outside.in just announced a new business model for partners where they actually sell the ads on the hyperlocal pages they provide to publisher sites. This was the last piece that needed to fall in place for Outside.in to provide a complete end-to-end hyper-local solution. DataSphere has rev-share model and they sell the ad inventory. Outside.in has free or license models and now they'll sell your inventory as well.

Of course, the two companies are different in their their approaches. DataSphere provides a platform for media to build local (semi-hyper-local) sites, while Outside.in is primarily an aggregator. However, there are ways in both solutions to do what the other offers.

In both cases, the hyper-local solution required the vendor to provide monetization services because local media doesn't know how to get it done on their own.

"We are starting to realize that a lot of publishers are struggling to generate healthy online revenues on their hyperlocal and local pages. So what we will do is power the entire local pages for the publisher, all within their brands.," head of business development Camilla Cho told Citizen Publishing.

Folks at DataSphere told me the same thing. They said KOMO had 70% remnant before they brought their solution to Seattle.

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