Glam Media To Raise $200 million
Posted by Peter Brady on Mon 13th August 2007 at 01:15 PM, Filed in Key Articles
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Every man and his dog seems to be calling themselves an ad network these days - although the term seems to be rather loosely applied!
Nonetheless, Glam Media (what I would term more accurately as a blog ad network) which gives prominence to women related issues has apparently been sounding out various parties in an attempt to raise a staggering $200 million in venture capital. This will be on top of the $18.5 million they raised in December 2006.
The funding placement document has apparently been doing the rounds all over the place and reveals impressive revenue growth of $21 million this year and a projected $150 million next year.
According to Techcrunch:
“The company is driving that revenue by selling ads for partner websites, not on their own page views. A minimal amount of research into their business shows that the company is an ad network, not a content site. In the private placement document, Glam describes itself in the first sentence as “Glam Media is a Web 2.0 distributed media company that is number one in reach for women as reported by comScore Media Metrix.” I believe this is a perversion of the term “Web 2.0″ and the company certainly is not the largest womens site on the Internet. While revenue growth looks good, Glam isn’t really a content site. They’re little more than an ad network that is claiming the traffic for all of its partners to make it look like a huge womens destination site.”
It’s an interesting insight into how traffic figures might be massaged for funding purposes. However, I’m not completely convinced that such accusations can be made without solid background evidence and Glam putting there side of things over on the debate. In particular, I really have doubts over the assertion “Glam isn’t really a content site” - even a cursory look at their sites would suggest there is rather alot of content being produced under their banner… Or is it?
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