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online advertising
After Promising It Wouldn't, Twitter Dips an Adorable Toe into Advertising
When is an advertisement not an advertisement? When Twitter says it's an "interesting topical experience." That's what cofounder Biz Stone, who once promised Twitter's website would never carry ads, is calling Microsoft's ExecTweets. More » -
twitterati
Almost All of Twitter's Mysteries Solved
Karen Tumulty of Time told us how senators handle their snuff. John Battelle explained why tweets seem so brainless. But who stole a Wired editor's lunch? Twitter still has secrets. More » -
online advertising
Layoffs at Federated Media Signal Blogs' Ill Health
John Battelle is the salesman for a host of indie sites, from the futuristic Boing Boing to the Web-obsessed TechCrunch to mommyblog Dooce. What does it say that his company, Federated Media, is canning workers? More » -
online advertising
The death of conversational marketing
An unproar in the world of tech blogs is uncovering a broader fault line between writers and advertisers. Om Malik's GigaOm and his other blogs have dropped their outside ad-sales firm, Federated Media, a startup run by John Battelle. Federated isn't just another ad network, nor is Battelle just another entrepreneur; he helped start Wired and The Industry Standard and an author of a book about Google, thinks that the future of marketing is conversations. And he launched Federated around that notion. Rather than shouting at readers with ads, marketers will use blogs to engage with their readers — and pay handsomely for the privilege. That's his theory, at any rate, which he is expounding in a forthcoming book. More » -
online advertising
Federated Media slashes rates to $5 CPM
John Battelle has his own plan for riding out the holiday ad-buying slump. The founder of online-advertising network Federated Media, which brokers ads for sites like Boing Boing, GigaOm, and Dooce, can't fire writers, but he can cut the price of their ads. John, be careful. Your inbred network is made up of bloggers who are also endorsers, who also shill their own products. Your list of clients is months out of date — it includes Digg and Fark, who long ago dropped Federated. Cut ad rates too carelessly and your Rube Goldberg business model may backfire. I mean this as the highest compliment: If anyone can lay himself off by accident, that someone is John Battelle. Here's the spam that Federated sent to bloggers this morning: More » -
politics
Valley homophobes still drafting Yes on Prop 8 response ad
BoomTown reporter Kara Swisher rappelled from a skylight at Jerry Yang's secret hideout to score this draft copy of an ad, in which a bunch of tech bigwigs come out in favor of gay marriage — or at least in opposition to Proposition 8, a California state ballot initiative which would ban it. No Valley company in its right mind would be seen opposing gay marriage, so why bother? More » -
mark frauenfelder
Boing Boing founder's directory of wonderful ads
Mark Frauenfelder launched bOING bOING, an ink-on-paper zine, in 1988. He did the artwork for Billy Idol's 1993 Cyberpunk album, using a Mac instead of a photo studio. Frauenfelder joined Wired when that was considered a foolish move by media professionals. Later he resurrected Boing Boing as a website, then again as a blog in 2000. He's now editor-in-chief of Make magazine. Does this guy have an unlimited supply of cool? Not unless he learns to say no to advertisers who co-opt him. More » -
great moments in journalism
New York Times reporter says he's an unwitting Dell shill
Marc Santora, the New York Times reporter who appears in ads for Dell's DigitalNomads site, says he received no compensation for the ad, which came from an interview Santora did for Big Think, a website backed by Facebook investor Peter Thiel. What appears to have happened: Dell or its ad agency, Federated Media, created the ad for Dell's DigitalNomads, using a clip from Santora's Big Think video. In a comment, Big Think cofounder Peter Hopkins says that Dell is a sponsor of his site, but the ad does not mention Big Think. (The Big Think interview was also published to YouTube, and DigitalNomads' producers embedded the clip in a blog post.) From what Santora's saying, no one asked him or the Times for permission to run the endorsement. If so, Dell could be in rather big trouble — and not just with the Times. More » -
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great moments in journalism
New York Times reporter shills for Dell site
Why is Marc Santora, a respected war correspondent for the New York Times, appearing in ads chattering about mobile technology? Click on the ad, running on sites like VentureBeat, and you're taken to a site, DigitalNomads, which appears to be a collection of blog-filler pablum about the wonders of the wireless Internet. Buried at the bottom is a tiny disclaimer: "Powered by Dell." Dig under the ad-placement code, and you'll see that the ad is sold by Federated Media, John Battelle's online-ad network. Battelle's outfit grew infamous last summer for getting some of the bloggers for whom he sells ads to recite a sponsor's slogan. That last time, it was Microsoft. More » -
rumormonger
GOP VP's sister works for Federated Media? Nope
(Update: Earlier today, 10 Zen Monkeys reported that Sarah Palin's sister, the one involved in a baroque family scandal, was now working in Sausalito for John Battelle's online ad agency. We've confirmed that this rumor is false. The original post at 10 Zen Monkeys has been unpublished. In the interest of transparency to the 115 of you who read it on RSS, the original text is below.) More » -
jackpot
John Battelle takes $22 million in fuck-you money
Anyone telling you that Federated Media, the online ad network which reps Boing Boing, GigaOm, TechCrunch and other blogs, has raised $50 million from investors is dead wrong. It's true, Oak Investment Partners and others paid $50 million for shares of Federated. But only half of that went to the company, we're told; the rest went to founder John Battelle and other employees. According to our source, Battelle's take was roughly 90 percent of the insider shares sold, or about $22 million. More » -
online advertising
Federated Media loses another client to an acquisition
High-Def Digest, a video enthusiast site with more traffic than Boing Boing, has been sold to Internet Brands, a domain-name speculator turned online-advertising network. That's bad news for John Battelle's Federated Media network, which up until now has repped the site; with Sphere's sale to AOL, it's the second acquisition this month to thin Federated's client list. -
jackpot
John Battelle raises $50 million as AOL snatches away his prize
For once, tech publisher John Battelle has timed a bubble just right. With Wired, where he was a founding editor, he was too early; with The Industry Standard, the tech weekly which crashed and burned early in this decade, a bit too late. But with Federated Media, he's proved his dealmaking prowess. He's all but nailed what we hear is $40 million to $50 million in venture capital for the online-ad network , on a $200 million valuation. And this right before AOL bought Sphere, a blog search engine which, by a rough count, serves more than half of the pageviews Battelle sells to advertisers. More » -
venture capital
Federated Media to raise as much as $50 million in VC round
Federated Media is close to announcing it has won between $40 and $50 million in funding from Oak Investment Partners and others, including Omidyar Network, the investment vehicle of eBay founder Pierre Omidyar. The Series C round sets the value of the blog-friendly online-ad network at $200 million. Insiders have said past reports of Federated's fundraising were premature, but we hear the news is for real this time. At this point, we'll believe it when we see the term sheet. Do send us a copy? [PeHUB] -
rumormonger
Federated Media snags $50 million investment?
A tipster reports that John Battelle's Federated Media ad network just scored a $50 million investment. We've emailed FM but haven't heard back yet. -
rumormonger
Federated Media's rumored $200 million valuation annoys its customers
Matt Marshall's VentureBeat airs a rumor that John Battelle's online blog-ad network, Federated Media, has sold a large stake to Oak Hill Capital. There's logic to it: Oak Hill is a private-equity firm with which his bankers, GCA Savvian, has previously done business. Battelle, left, was on a conference call when I tried to reach him, but in the past he's offered no comment on investment rumors. Another source dashes cold water on the notion that a deal's been done. I'd be the first to tell you not all rumors pan out. What I find more interesting about the report is this line: More » -
rumormonger
Is John Battelle selling a piece of Federated Media?
VentureBeat reports that online ad network Federated Media is close to raising a $30 million round of financing, at a valuation of $200 million. The deal is not as advanced as VentureBeat suggests, we hear. But let's assume a large investor is seriously weighing a term sheet. Awesomely tan tech-reporter-turned-salesman John Battelle must be torn. More » -
deals
John Battelle turns down $100 million offer for Federated Media
When word leaked that John Battelle had hired San Francisco investment bank Savvian to "manage investor interest" in Federated Media, his online-ad network, the move raised a question: How interested were investors? $100 million interested, reports Erick Schonfeld at TechCrunch. That's the offer Battelle got, and turned down, from one unnamed investor. Schonfeld also points out this curiosity: At Battelle's last venture, the Industry Standard, the entrepreneur was the one pushing to sell out, not wait for a better offer. -
breaking
Federated Media hires a banker — is John Battelle's company up for sale?
John Battelle's online-ad rep firm, Federated Media, has hired a small investment bank, Savvian LLC, to "manage investor interest," according to a source close to the company. What does that mean? Hopefully Battelle wasn't giving interested investors his customary greeting, shown here. FM sells advertising and performs other services for blogs in specific subject areas. It's especially strong in tech, representing TechCrunch, GigaOm, and VentureBeat, among others. Online ad networks are fashionable among investors right now, so it's possible Federated could be entertaining buyout offers. But Battelle's choice of a banker is curious: Savvian is known for helping companies in dire straits. It's also known for getting smaller media companies sold to larger ones — such as BeliefNet, recently purchased by News Corp. with Savvian's help. -
forecasts
John Battelle's secret to making year-end predictions
Along with gifts, wassailing, and bah humbugs, the holidays bring an onslaught of predictions for the new year that mostly aren't worth reading. But if you are interested, egoblogger Robert Scoble sits down with the Supremely Tanned One, Federated Media chairman John Battelle, to ask how he manages to make predictions that are remarkably accurate. The secret, replies Battelle to the fawning Scoble, after first congratulating himself for his success rate, is: "A lot of these are not that difficult to predict." It doesn't take the ambiguities of a Nostradamus quatrain to predict that Microsoft would buy its way into advertising, Yahoo would struggle, blogs would get better, and people would call Web 2.0 a bubble. So if you are preparing your own predictions for 2008 and want to achieve a high success rate, don't predict — just state the obvious. -
hulu
A gift for our dear readers: 10,000 Hulu Invites
I saw a theme this morning as I perused the various other tech sites: Hulu invites! Hulu, the video-streaming partnership between News Corp. and NBC, is throwing open its doors to many early adopters by offering up thousands of invites on several tech sites. If you haven't gotten a chance to play around with Hulu and want to see just what the hell Paul Boutin is complaining about, here's your chance. GigaOm, Read/WriteWeb, TechCrunch, and Mashable are giving away 2,500 invites each. All, we note, are clients of Federated Media, John Battelle's online-ad network. Coincidence, conspiracy, or just part of a future Hulu advertising campaign? -
jakobandjulia.com
Relive the disgusted voyeurism of Jakob and Julia with the new John and Jen
Another startup boy and his girlfriend have started a Tumblr blog to overchronicle their relationship. Shortly after Vimeo founder Jakob Lodwick and TV personality Julia Allison broke up and ended their blog Jakob and Julia, John Shankman (an employee of the Federated Media online ad agency) started the semi-anonymous JohnandJen.net. More » -
lazy valleywag
John Battelle's million-dollar ad deal
WEB 2.0 SUMMIT — At a panel discussion about making money in online video, Federated Media VP of sales Chas Edwards said he'd pulled checks "from a million dollars down to $10,000" for video ads on Federated's network, which includes the popular shows Diggnation and Ask a Ninja. The burning question: Who paid a million bucks to Federated, run by Web 2.0 conference co-chief John Battelle, and for what? We were unable to tackle any of Federated's execs at the jam-packed conference Wednesday. Somebody get Edwards or jbat to spill the details, and send it to us. Otherwise we'll wonder if Edwards wasn't actually referring to Microsoft's non-video advertorial deal for which Federated bloggers wrote ad copy. Why? Because Edwards also said the biggest dollars come from selling "host endorsements" rather than separate advertiser-produced spots. -
web 2.0 summit
John Battelle wants to hike his rates
WEB 2.0 SUMMIT — Is preternaturally tan conference organizer John Battelle, who runs online-ad network Federated Media, here to interview top industry executives — or cut some deals of his own? "There's this idea that you can sprinkle some pixie dust on all this inventory and make more money," he observes, speaking of the mass of Web ads sold at bargain-basement rates. AOL's Curt Viebranz says that ads sold on Tacoda — the startup he just sold to AOL for a reported $275 million — sell at a $4 cost per thousand viewers. When he hears that figure, Battelle raises his eyebrows and asked Viebranz to talk to him after the panel. -
quotable
"If I wanted a $14 billion advertising business, I could get halfway there by buying Yahoo right now. But that's just me. " Federated Media head John Battelle to Microsoft CEO Steve Ballmer at the Web 2.0 Summit. -
online advertising
The great blog rollup
At times, there's nothing more amusing than watching a blogger in the middle of a meltdown. Barry Ritholz, the CEO of stock-research firm Fusion IQ, has apparently been seized by panic over an interesting, but unthreatening, development: Big media companies getting into the business of selling ads for blogs. They've already built up an expensive ad sales force, and often find it difficult to grow traffic on their websites faster than their salespeople can sell it. A natural solution: Approach blogs covering similar topics and offer to sell ads on their sites, sharing the revenue. The Washington Post was one of the first to do so, and now, apparently, Reuters is getting into the game. The part that has Ritholz alarmed, though, is a requirement that the blogs "assign" their traffic to the larger company for purposes of getting counted by Nielsen/NetRatings and ComScore Media Metrix, the two largest Web-traffic research firms. Why does Ritholz find this so alarming — and why is he utterly wrong? More » -
party report
Conversational Marketing Summit unofficial afterparty
I stopped by the House of Shields for the "unofficial afterparty" of this week's Federated Media Conversational Marketing Summit and was greeted by a crowd of FM employees and Web 2.0 regulars. You could tell the crowd apart pretty easily — the FM employees wore suitjackets and had the ad-salesman glow to them, the regulars all answered "no" when asked if they attended the conference. A few FM employees indulged my request to pose for a picture doing the John Battelle salute, including Director of Author Services Bill Brazell, pictured above. (Fun fact: he and I graduated from the same high school!) So what is "Conversational Marketing" anyway? New advertising paradigm? Or just a way to keep FM boss Batelle in Mystic Tan? At one point, social media gadfly Chris Heuer and I talked about whether the term itself has a definition beyond "bullshit." He seems to think it does, I'm still undecided. The whole idea has the taint of undisclosed advertorial to me, especially after last June's "people-ready" mini-scandal and its aftermath. After the jump, check out the gallery for more tech marketing people than you can handle. More » -
to do
Coming up on the Valleywag calendar
- Friday: Anyone heading to Facebook board member Peter Thiel's posh VIP gathering Friday night? Let us know how it goes.
- Saturday: The Singularity Summit takes place at the Palace of Fine Arts' theater. Be there to hear about the wonderful world of machine learning and how to shape artificial intelligence to avoid a future full of robot attacks. [Singularity Institute]
- Tuesday: Federated Media's Conversational Marketing Summit is Tuesday and Wednesday at the Presidio. [Federated Media]
- Wednesday: Stirr is back with another "Founders' Hacks" event, this time up in the city. Schlep your way to Mighty in Potrero Hill to hear founders from Lookery, Vadver, and OoogaLabs try and say their companies names without looking foolish. [Eventbrite]
- Don Clark of the Wall Street Journal heads up an evening of rock music at the Rockit Room, as a fundraiser for the Girls for a Change charity. [Upcoming]
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media
The return of The Industry Standard
Could it be true? Eric Savitz of Barron's blogs about the apparent comeback of his former employer, The Industry Standard. The weekly tech trade magazine inflated, and imploded, more or less in sync with the dotcom bubble; shuttered by owner IDG, it's seen a series of mostly pathetic attempts to resuscitate its website, all of which floundered. But the website now promises that the Standard is "coming back." Odd timing, given Time Inc.'s shuttering of Business 2.0, and the discontinuation of the Red Herring's print edition. Founder John Battelle tersely wishes the new Standard luck. I'm betting that the publication bypasses print and goes straight to the Web — just like Battelle's current venture. -
great moments in advertising
Federated Media's teeny-weeny remnant problem
Okay, this is ridiculous. On what planet is the bikini-wearing readership of TechCrunch sufficient enough to warrant Federated Media serving up the above ad on its site? None, of course. Federated Media founder John Battelle emails us to point out that the bikini ad from DivaVillage.com and other gender benders displayed to the site's mostly male readers aren't a result of targeting gone awry, but simply the result of Federated Media serving up low-paying, untargeted "remnant" ads when it's not able to sell ads at full price. Battelle also notes that it's TechCrunch's decision, not Federated's, to accept those ads. So there you have it, TechCrunch readers: Michael Arrington, according to John Battelle, thinks you want to buy bikinis. -
great moments in advertising
Digg's targeted ad system is amazing!
No wonder Digg, the nerdly news-discussion site, is dumping Federated Media, John Battelle's online-ad network, as the source of its ads. Lately, FM has outdone itself in precisely targeting its clients' demographics. First, it delivered a $15 off coupon for midpriced casual clothing chain Fashion Bug for Michael Arrington's tech news site TechCrunch, perfect for that blog's target audience of middle-aged Midwestern moms. Now FM is displaying banner ads promoting the American Girl line of books and dolls whenever I visit Digg, as pictured in the screenshot above. John Battelle, how did you know I was completely obsessed with those books ... in fifth grade? More » -
federated media
John Battelle feels like he needs more money
Private Equity Hub reports that Federated Media, the online ad network, has raised $4.5 million in a second round of funding, not long after raising $2 million in venture capital, on top of some seed funding. This, of course, after rumors that FM was "overdue" in raising more funds. We're not sure what founder John Battelle plans to do with all that cash, but perhaps, just perhaps, he might want to bankroll some hair-replacement therapy for FM videoblogger Morgan Webb. -
conflicts of interest
Videoblogger Morgan Webb shows some skin
TechThatOut believes it's caught Morgan Webb, host of derivative, me-too, copycat tech videoblog WebbAlert, exposing her ... scalp? The screenshot is a bit blurry, raising questions about whether Webb is actually missing some follicles or just had her hair pulled back too tightly. But it does make one wonder why TechCrunch editor Michael Arrington went gaga and declared her "fairly hot." A quick survey of Valleywag's temporary officemates got a different ruling: "fairly scary." But there's something equally scary, and even balder, about WebbAlert. More » -
search
MerchantCircle provides a circle jerk for local businesses
The first rule of Valleywag: Never pitch Valleywag. But sometimes the temptation just proves too great. In response to a post about Google and Yelp's rivalry in local search, a MerchantCircle employee contacted us to tout the company's supposed leadership in the market, pitching the site for some Valleywag love. Well, here's some tough love. We've looked into MerchantCircle's business model .. and found nothing but self-love. More » -
online advertising
TechCrunch hopes to turn its readers into women
I haven't seen the actual demographics, but I'd be shocked if TechCrunch's readership, like every other tech site, is anything but crushingly male. Which makes Valleywag reader Mark Mercado's sighting of an ad for Fashion Bug, the discount women's retailer, on the tech-review site quite curious. Either Federated Media, TechCrunch's ad representative, is getting desperate and selling space to so-called "remnant" ad networks — the Ross Dress for Lesses of the online-advertising world — or Fashion Bug, in a savvy move, is marketing to cross-dressing entrepreneurs so desperate to get TechCrunch editor Michael Arrington's attention that they're willing to doll themselves up like Julia Allison, the New York tartlet who made a recent Bay Area tour. -
digg
Kevin Rose breaks up with John Battelle
It's not you. It's me. We can still be friends, right? That's how I translate Digg founder Kevin Rose's blog post announcement that Digg is dropping Battelle's Federated Media as its online-ad rep and signing up with Microsoft. Says Rose:It's a deal similar to the one Facebook signed with Microsoft last year.
That no doubt means that Microsoft ponied up a big upfront guarantee to win Digg's business. That kind of offer is naturally hard for Battelle's startup to compete with. But it's hard to get dumped for someone richer. And softening the blow by continuing to toss some scraps of business Battelle's way? That just makes things worse. Break up like a man, Kevin. (Photo by dfarber) -
federated media
User trust is built by shilling
Am I the only one who still thinks "conversation" should mean "How's the family," "How 'bout them Yankees," and "Let's talk about our feelings" and not "I'm in bed with this company because..."? Federated Media (a competitor of Valleywag's parent company) started another "conversation" sponsored by one of the blog network's advertisers. In the last "conversation," bloggers wrote blurbs pushing Microsoft's slogan, "People Ready." The new blurbfest centers on how search services can win users' trust. The answer, according to "conversation" sponsor Hakia, seems to be "give them a poll to fill out and let them comment a bit." Bloggers including Techcrunch editor Michael Arrington and GigaOM manager Om Malik (who was supposedly sorry for his involvement in such a project) gave little quotes tailored to Hakia's message. None of this is evil, or even dishonest. It's just crap. The same kind of crap that supposedly led people to leave corporate-owned newspapers and TV for blogs that wouldn't spew it. More » -
marc andreessen
A Netscape warrior thinks better of tweaking Microsoft
Late to the blogging game and caught in the throes of newbie enthusiasm, Netscape cofounder Marc Andreessen hasn't yet learned the virtues of thinking before clicking the "Publish" button. Here's the story of the post he quickly came to regret. More » -
john battelle
John Battelle on the money
It's the usual fluffery in this BusinessWeek love note to John Battelle and his Federated Media, including the literal money shot: "Last year, [FM] sold more than $10 million in advertising for about 90 Web sites. This year, Battelle says it is on track to turn a profit and increase sales fivefold." Check the counter-quote from none other than Jason Calacanis, who dislikes the idea of not owning the blogs in the network: "The second you build your client's business past $500,000 a year, they hire their own sales force." Doesn't leave a lot of room to maneuver with recently acquired FM client Ask a Ninja, reputedly brought aboard with a $300,000 guarantee. That's not the best thing about this article, though. More » -
dethroner
Blogging for (Relatively Low) Profit!
LOCKHART STEELE — Joel Johnson is one of my favorite bloggers. He helmed Gawker gadget blog Gizmodo for a few years, then oversaw all the Gawker tech sites before departing this past summer (damn him) for the greener pastures of Wired's website, where he's again managing bloggers (poor fool). More »
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