Spent some time on the phone with Michael Yavonditte, the CEO of Quigo yesterday. I've been getting smart on many of the new innovators in the advertising space, both for my book, as well as for my other role as band manager of Boing Boing and whatever might come next….

Spent some time on the phone with Michael Yavonditte, the CEO of
Quigo yesterday. I’ve been getting smart on many of the new innovators in the advertising space, both for my book, as well as for my other role as band manager of Boing Boing and whatever might come next. Man, there’s a lot going on in the online marketing space right now – a lot of innnovation, a lot of cool new shit, and a lot of potential.
According to Yavonditte, Quigo has perfected a relevancy algorithm that does AdSense one better – far better, to paraphrase his words. Quigo is focusing on picking off the high-brand-value publishers who use AdSense but are looking for a network solution that pays them more for what they believe is significantly better inventory than the lowest common denominator AdSense approach. Great quote: “Advertisers are saying to me ‘I don’t want the Guadalupe Times, I want ESPN!'” He’s already stolen some business – he’s got USA Today, National Geographic, the New York Post, and several others signed up, and reportedly has some major equity-for-distribution deals in the works, akin to what Google and Yahoo did in their early days.
While I am sure his algorithms are good, in essence, Yavonditte’s secret sauce is vertical categorization. He’s come up with a handful of major categories – Travel, Health, etc. – that advertisers self select into. Then he applies his contextual algorithm within that category, yielding what he claims are major improvements in CTR and PPC.
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