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The next big thing: Pixsy is building inventory for the Web

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Back when Chase Norlin worked at Sony Corp. ADR (NYSE:SNE), he did something quite unique; that is, he put together the company's first online photo sharing site. From there, he went on to help several dot-coms, such as ValueClick and InfoSpace.

But he realized something. "I was a 'publisher distribution' executive," said Norlin in a recent interview I conducted with him. "This means I was responsible for monetizing traffic on as many quality sites on the Internet. So, we'd take our large base of advertisers and bring them to quality websites and pay them to run the ads. We were always competing against other ad networks and against big guys like Yahoo! and Google, and it was becoming a game of 'I'll offer you 5 cents more.'"

There had to be a better approach. So, he did something about it; that is, he started Pixsy (in 2005).

Basically, the focus would be to help websites generate new ad inventory – instead of competing for existing ad inventory. Thus, with the Pixsy platform, any website (no matter how big or small) can run their own private-label image or video search engine. "Image and video search creates new user activity on these sites, new searches, extends brand, and generates new ad revenue for these publishers," said Norlin.

In fact, Time Magazine names Pixsy as on of its Top 50 companies.

OK, what is Norlin's take on the future of online media?

  1. "There will only be a few concentrated places where all media exists. These are the 'mega-portals' and will be companies like MSN, Google, Yahoo, Comcast, etc. These are centralized locations where users start their day and return regularly for all of their media content."
  2. "A potentially much larger opportunity: controlling and owning the distribution of media content across the web. This is an entirely different business from that of a portal. This is the platform that powers media experiences in many different web-based locations.
    "It's possible that one company could control both of these (e.g. this is my theory on why Google acquired YouTube, so that they could control destination portal traffic and distribute videos across the web through AdSense)."
  3. "There will certainly be emerging and new business models that no one has heard of or thought of yet. People tend to forget the rapid pace of innovation today and default to thinking that the big guys have a corner on this. Unlikely. There are an amazing amount of small, innovative startups that no one has heard of that will be making a massive impact in online video in the coming years."

Tom Taulli is the author of a variety of books, including the Complete M&A Handbook and operates DealProfiles.com.

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Last updated: July 11, 2009: 04:17 AM

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