Content syndication platform Mochila plans to provide an ad-supported component to its syndication network with a product called AdMatch. The system generates a three-way revenue split between the content provider, publisher and Mochila.
The company plans to make its online marketplace for content available in both paid and ad-supported delivery models. It launched in April with a paid product Mochila CEO Keith McAllister likens to an iTunes or eBay-like model where publishers buy only the content they need. To date, Mochila’s network has grown to 95 content providers.
Mochila’s original revenue model divided payment for use of articles between the provider and itself. A content owner received 70 percent of the licensing fees, and Mochila got 30 percent. With its ad-supported model, content owners take in 40 percent of the revenues, the re-publisher receives 30 percent, and Mochila gets 30 percent.
The ad unit appears in the page. It breaks the text within an article or other content obtained through the service. Mochila partnered with Quigo, Tacoda and 24/7 Real Media to launch the product. Each partner brings a different element to the deal, said Benjamin Chen, chairman and CTO at Mochila. Advertisers will be able to target content contextually, behaviorally and even use geo-targeting where it is appropriate.
Ads runs in conjunction with existing inventory on a publisher site. Content providers and publishers can each put parameters on what ads will run, and can block particular companies from running on their site or in particular articles.
“This is new money, they’re not reaching this market today, the only way to do this is through us,” said McAllister.
Mochila expects its ad-supported offering to be widely accepted among its partners, who are in many cases both content providers and content re-publishers. While it will encourage content providers to offer up content in the ad-supported platform, providers will be able to decide which content will be offered free with advertising.
The next offering on Mochila’s roadmap is expected to be in December when the company adds video and audio capabilities.
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