Investor Funded Content Firms are Eating Ad Agencies’ Lunch

It’s a familiar refrain. One that we’ve all heard quite a bit over the last couple of years. From rough starts (think The Atlantic) to full blown implementations (think BuzzFeed and, well, everyone else), the road to native advertising nirvana has been a busy one.

And investors are getting in on the action too. In September, Vice Media took $500 million to fuel its thriving news and entertainment enterprise. In August, BuzzFeed took $50 million from Andreessen Horowitz to help grow its content offering beyond its usual fare of “Top 12 Reasons Caterpillars Make the Best Pets” crap.

And now, Vox Media, wizards behind The Verge, SB Nation and Vox has taken $46.5 million from General Atlantic to further boost its content creation with a focus on video. And in addition, extend the reach of that content, video and the ads that accompany them beyond the brand’s own 7 editorial properties. And that’s not all. Vox Media plans to build out its in-house agency, Vox Creative, to further service the needs of brands engaging in native advertising and content marketing.

Can your average ad agency compete with this sort of approach? No wonder Martin Sorrell is paranoid!…

Source: www.mediapost.com

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Kenneth Carnesi holds a Juris Doctor degree from New York Law School and a Professional Certificate in International Banking from Harvard Law School. Kenneth Carnesi is the Director of Operations and Government Sales at Anaptyx LLC and sits on the Boards of The Lazarus Organization, Monkeetech LLC and MG Madison Phillips, Inc. Mr. Carnesi has also founded CICG - Carnesi International Consulting Group, a company specializing in strategy consulting to small to mid-size businesses.

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