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Everything it takes to sell that thing: marketing, distribution, delivering a service, and processing the sale. Advertising. The advertising business model has been around a long time and has become more sophisticated as the world has transitioned from print to online. Disintermediation.
. “We’re not AdTech investors,&# I’d push back, “we just have a bunch of companies in the portfolio that are working in and around online advertising.&# Most of our AdTech investments would be labeled “glue&# (they were all connecting or intermediary technologies – just applied to online advertising).
. “We’re not AdTech investors,” I’d push back, “we just have a bunch of companies in the portfolio that are working in and around online advertising.” To be clear, we’re not breaking out online advertising as a theme of its own – we still think of it as a subset of our Glue investing.
These are companies that offer consumers a product or service (or both) that they are paid for (as opposed to consumer audience businesses that are monetized through advertising). Convenience tends to be an area where incumbents struggle, especially when convenience is tied to new forms of distribution. Why Convenience is Better.
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