PlayerSearch Blog

by Ted Kasten, Founder of PlayerSearch

Fantasy Sports Ventures is the Federated Media for the Sports world

TechCrunch is reporting that Federated Media has raised $50mm in its C-round. “Federated Media acts as the advertising salesforce for about 150 blogs and dozens of online media properties with a collective audience of 50 million people a month. Its blog partners include Boing Boing, GigaOm, Ars Technica, Silicon Alley Insider, and TechCrunch.”

As I have talked about before, Fantasy Sports Ventures (my ad network partner) is taking a similar approach for the on-line sports world. FSV has a network of about 100 sports focused websites and has bought 5 internet properties in less than twelve months. In 2007, FSV reached an audience of 5 million people a month across its network, which placed it in the top 5 among sports sites. I expect that number to grow dramatically this year.

Some amazing figures…Federated commands between $10 to $25 CPMs (Google AdSense pays less than $1 CPM) which it splits with publishers (60% go to the publishers). A $25 CPM is among the highest CPM I have heard of for an ad network. Those high CPMs helped it generate $22mm in revenue in 2007, up from $4mm in 2006. This may help explain part of that value:

Compete Affluent Visitors

It will be interesting to see if John Battelle and Federated Media end up investing in or even purchasing some of their blog partners to lock in valuable advertising inventory. They state that they have no plans to at this point…but it does make sense if they are able to command a higher CPM for owned and operated sites than they can for affiliate sites. Also, if competition picks up for ad networks, it may become a necessity to ensure their long term competitiveness. According to the article, Federated has been cash flow positive for the past year.

These numbers are pretty amazing.

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April 15, 2008 - Posted by | Vertical Ad Networks | ,

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