13 August 2009

JacobJordyn: The future of Online Advertising?

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

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