Anyone who has spent time reading articles on the Internet is already familiar with the “suggested” stories that have become a mainstay at the bottom of the page. What they may not know is that this seemingly random set of linked content pieces has become big business, with increased competition for readers’ eyeballs.
With the potential revenues for the websites that carry the suggested content, they have a strong interest in showing the articles that best fit their readers and are more likely to get clicks. While most publishers work with a single content provider, Optimalya, one of the ten companies participating in the Geektime Conference‘s Startup Arena pitch competition on Wednesday, is hoping to break open the market to provide these websites with better options.
What makes this company stand out in this industry is that they come not as another content provider, but as a platform market that can help publishers offer a better selection of content. Perhaps this edge will help them beat the other nine companies also competing in the Geektime Conference’s Startup Arena pitch competition on Wednesday.
Co-founded in 2014 by CEO Tomer Treves, COO Maor Davidovich, and CTO Kostya Volkov, the Israeli company has said that their product has already begun testing during the summer. Up to this point, Optimalya has not yet reached out for external funding.
The free market for suggested content
Optimalya is entering what has become an increasingly crowded space where big names such as Outbrain, Taboola, Google, Yahoo, and many more have developed a massive market for their content. The problem for publishers is that the current model has kept them tied down to receive content from only one source. This means that they and the money that they are hoping to make by having the paid for article links on their site are dependent on that one source to give them the best possible content.
Unfortunately, this is model has hardly been ideal in providing the most relevant articles for the readers to click on, meaning that publishers are missing out on potential revenue.
Optimalya’s solution to this problem is their Content Supply Side Platform that they are calling the CSSP. When the publisher adds the code to their site, their platform is able to draw content from across different networks. The market works on a bidding model that can help websites get better rates for renting out their real estate.
How does it stack up?
The concept that Optimalya is bringing to the table is important for two primary reasons. As websites look for new revenue sources to keep their operations viable, especially ones that include reporting, any system that will give them a leg up with advertisers should be taken as a positive. Hopefully the bidding system will help raise rates throughout the industry with the help of some healthy competition.
Secondly, limiting the source of content available feels unnecessary, and hurts both the publishers and readers. Moreover, I have never been that impressed by the selection of the suggested articles on the sites that I visit, which is very unfortunate since I am the ideal audience for this type of service. Most of the articles posted there are irrelevant to me, causing me to be suspicious about what is behind them. By opening up to a richer pool of potential content, there is a much higher chance that the quality will improve as well.
The question to ask here is how the current market will respond to this offer that could be very beneficial for publishers. With any luck and if the technology proves to be solid, then this could be the start of an interesting turn for the industry.
Opitmalya is expected to announce its first official funding round on Wednesday during the annual Geektime Conference in Tel Aviv.