Street Speculator

The title of this document was recited in the movie Barbarians at the Gate by the character playing Henry Kravis.

No one thought it would be easy to overthrow CNBC as the prime business channel when News Corp (Symbol: NWS) decided to create a 24hr. business network. However, the Fox Business channel does not seem to be scratching the surface either.

vs. 

Recent news reports state that the network is considering hiring Don Imus in order to boost ratings. Imus is not known as a Business personality. The move, if true, feels more like desperation instead of an innovative business decision.

Nielsen Media Research reported that CNBC receives more than 11 times the number of viewers than the Fox Business Channel. That is a big gap in viewership. The SPEC’s predict that News Corp will pull the plug on this channel in the 1st quarter of 2010. News Corp. is currently experiencing heavy losses and desperate to cut its liabilities. This is probably the reason they are attempting to sell the Dow Jones Stock Index.

We believe that the Fox Business Channel will meet with the same fate as the former CNNfn network.

This company, JacobJordyn, is unique to say the least. It seems that its goal is to change the parameters of online advertising. The question is, can their business model be sustainable in the future?

The usual online advertising models include Cost-per-Click (CPC) and Cost-per-Measurement (CPM). Many feel as though both models are in the class of “Rolling the Dice,” and the advertisers goal is to hope they hit something. However, JacobJordyn promotes EXCLUSIVE online ad placement. With their EXCLUSIVE model this company has basically taken newspaper advertising characteristics and moved it to the World Wide Web.

The SPEC’s would admit that the EXCLUSIVE model would provide any advertiser with the greatest opportunity in reaching potential consumers and customers. A no-brainer. Our concern is whether their “low-cost” DMA ad-placement model is economically sustainable.

What JacobJordyn does (according to their Twitter site and their posting at badservicezipcodes.com) is charge $10 per DMA (their are currently 210 US DMA’s, or Designated Market Areas). The price is low, but it would provide a tremendous benefit to advertisers (once again), especially small business. If JacobJordyn has limited expenses, then the $10 DMA monthly cost may last into the future. If they are able to generate a lot of BUZZ with this ad model, then of course they will be able to raise the cost in the future. That is the huge question that needs to be answered. Otherwise, their ad model is definitely courageous, viral, SPECULATIVE, innovative, etc…….

It would amaze us if this company, although an ad-services company, starts to eat into the online ad market share of either Google (Symbol: GOOG), Microsoft (Symbol: MSFT), or Yahoo (Symbol: YHOO).

The SPECS’s will definitely keep this start-up under the radar.

Current Offerings:

$10/DMA/month

EXCLUSIVE ad-placement

1st placement free (30days)

Up-to-2 ads running simultaneously

advertising@jacobjordyn.com

1-888-229-5198