NewsGator and AFP Olympics Widgets, Guaranteed CPM

NewsGator and AFP have teamed up to offer a collection of widgets featuring their premium content covering the upcoming Beijing Olympics. These widgets are squarely targeted at media sites and popular blogs, and as part of this program we are guaranteeing a CPM to any approved site that runs the widgets on their site. Here’s a link to the press release we put out this am.

Why is this important? For us it’s significant because it shifts our business model from being purely a hosted service provider to a syndication network. Widgets have many use cases, a vehicle for brands to reach consumers is just one while what we predominately do, enable content owners and distributors to syndicate their content is another. This Olympics feature program is a perfect adaptation of several trends in widgets, including premium content syndication, display ad monetization, and mid-tier distribution site targeting.

We are making it drop dead easy for a premium service like AFP to expand their reach beyond their current clients and top tier media sites to the long tail. Blogs and small/medium traffic websites offer a terrific syndication opportunity for AFP but the cost of reaching these sites with their traditional mechanisms is punitive. What NewsGator’s widget services offers AFP is the ability to quickly and easily reach this long tail with a self service model and a monetization scheme that correlates to the channel.

Speaking of monetization, our ad network partner is Advertising.com, a premium online ad network by any definition. This is one reason why we have a qualification program around this, because advertisers really care about where their ads are showing up so we have to have a process to ensure that these widgets are being placed on sites that are topic and audience appropriate. What this means is that we have some qualification guidelines to be met in order to participate in the guaranteed revenue part of the program, there is nothing here that restricts anyone or any site from picking up these widgets and running them.

If your site is part of the revenue side of the program we are offering a co-branding opportunity. We have designed the creative for these widgets with a replacement logo placeholder that we can use to co-brand these widgets with your branding. This is appropriate for the kind of sites we envision running them and it’s a great way for small/mid tier sites to extend their own brands.

Lastly, I want to emphasize a couple of final thoughts. First and foremost, we are not changing our business at all, we are expanding it on top of the hosted widget service we have been successfully selling to publishers. Widgets are becoming a more complex business as they grow up, we intend to lead that by innovating the service offerings we are making available and bringing traditional media companies with us as their partner. AFP is a world class news agency who deserve a lot of credit for trying something new as a means of reaching new audience and satisfying the demands of online new media.

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