The Community Exchange Podcast by OpenWeb The Birth of Digital Advertising with Advertising.com OG David Jacobs
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Feb 4, 2025 In this fascinating discussion, David Jacobs, CEO of Contxtful and a pioneer in digital advertising, shares his journey from the early days at Advertising.com to current challenges in ad tech. He analyzes the potential breakup of Google and its consequences for publishers, alongside the shift towards e-commerce ads amidst a decline in search traffic. David also weighs in on the role of AI in targeting and the future of digital revenue models. With insights on the evolving landscape, he highlights the need for innovative strategies in a cookie-less world.
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Ad.com's 9/11 Arbitrage
- After 9/11, ad.com bought remnant ad inventory from bankrupt companies like Excite Home.
- This arbitrage opportunity turned the company profitable, buying at $0.17 CPM and selling at over $1.00.
AOL's Acquisition Strategy
- AOL's acquisition strategy was driven by a need to trade cash flow for revenue growth as its core business declined.
- This approach often failed due to a lack of innovation space for acquired companies.
Telcos and Ad Tech
- Ad tech companies often struggle within large corporations like telcos.
- These corporations prioritize overall cash flow and EBIT, neglecting the smaller-scale but potentially innovative contributions of ad tech.