Tuesday, September 30, 2008

Another non-Google online ad firm dies out

The latest Silicon Valley gossip has Jellycloud, an online ad placement company, shutting its doors this last week.  The firm started as Gator, the pesky psuedo-malware outfit we all knew and loved a couple years back.  

While given that information, few will likely mourn its passing, the more important facet of this is that Jellycloud's failure is yet another in a string of VC-funded online ad companies going out of business.  In this case, they chewed through over $50 million in funding before the collapse.  Can anyone but Google make money in this market?  Even among the big players, Yahoo relies on a partnership with Google for a great deal of ad business, and it's quite well-known how Microsoft's online division's bottom line looks.

Until next time!

Michael O'Brien is a partner at Praece Strategic Technology Consulting, helping small and medium businesses align technology plans with business goals.

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