February 12, 2008

Spottt Reincarnates LinkExchange

Michael Arrington

100 comments »

Spottt, which went into private beta at TechCrunch40, launches to the public today. The product is part of the Adbrite advertising network, but is being run as a separate brand.

It is a reincarnation of sorts of LinkExchange, an advertising network that launched in the mid nineties and was later acquired by Microsoft in 1998 for $265 million. LinkExchange co-founder Tony Hsieh (also the CEO of Zappos) is advising Adbrite on Spottt.

The basic idea is that you place the Spottt 125×125 ad unit on your site, above the fold (no adult content). They provide a simple embed code, or you can use your own ad serving software (we use OpenAds). For every two ad impressions that you serve, you’ll get one free ad somewhere on the network (you can see the ad unit here on TechCrunch, we’ve added it into the sponsor’s area to the right to test it), and it is also on CrunchBase.

That leaves Spottt with 50% of the ad inventory for itself. For the first year they’ll just place their own ads on sites. After a year they’ll add the extra inventory to Adbrite and let advertisers purchase it.

This isn’t for everyone, of course. Sites that can sell ads will want to do so to make the money. But Adbrite founder Philip Kaplan notes that there are millions of websites that cannot afford to advertise, and this gives them a way of doing so without paying. And even sites that have advertising units on their site may want to add this to get some inventory on other sites. “I think this is the coolest thing we’ve ever built,” he said.

Spottt is also providing real time statistics for users, including the number of ads you’ve shown, the number you’ve received (half of that) and the number of clicks on both ads you are showing and those you are receiving. Click on the image for a larger view of sample stats.

Spottt is run from Amazon’s EC2 web service, and advertising images are hosted on Akamai (Kaplan says he wants to be able to scale quickly in the event it grows anything like LinkExchange did back in the day). They are also working with Gigya to enable the placement of the ad unit on MySpace and other social networks. If ads aren’t accepted on any particular social network, he says, they’ll just run their house ads on that site.

If you’d like to sign up for the service, use the code “techcrunch” and get 1,000 free impressions to start. The first 1,000 registrations qualify.

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  1. HonestMall.com

    cool idea!

  2. Startups

    Check out http://adgridwork.com as well…

  3. plop

    so we can expect all the attendies of the TC40 will be featured here sooner rather than latter…

  4. antje wilsch

    ok I’ll do the obligatory girlie response “ohhhh that dog is SOooo cute” :)

  5. Sid Puri

    Adverting network area is hotting up again with new innovation is being done in field of creating inventory and for selling to advertisers. Google valuation with Ad words and adsense product is surely going to create more heat.

  6. Cheap Book

    I will give it a try…

  7. Brian

    I’m going to throw a copy on TagSum and see what happens

  8. allen stern

    mike - any thoughts on this vs. entrecard which appears to be popular in the moneymaking and seo blogging areas. same idea i believe in concept.

  9. thoracle

    Who is the target market? GIRLS. LOL.

  10. Bijan Shahrokhi

    I think it’s a great idea. It is very useful to startups with minimum cash. Google is too expensive nowadays. I’m certainly giving it a try.

  11. Anuj Seth

    I agree with #2 above.

    I’ve used http://www.adgridwork.com/ on some on my websites.

    Spott is getting more publicity than other similar services out there! ;-)

  12. lawrence

    it’s gonna bomb.

    anyone who is a real business, can and will buy advertising.

    then there’s everyone else - which are not really into business…if this is for them, they won’t use it. they won’t want to bother with the technicalities of installing it and cross promotion and what have you.

    there’s adwords buyers, and no adwords buyers; there really is no middle ground - for something like this

  13. Stan Oleynick

    Isn’t Entrecard doing the same thing?

  14. steve

    Spottt is awfullly similar to Entrecard, although Entrecard is only for bloggers. IMO Entrecard is executed better because the credits you earn act like money, to buy ads on any blog you like (which, I beleive is somewhere in the area of 4000)

    I wonder how Spottt is going to stop people from simply reloading their pages a million times to build up credits?

  15. Everett

    Excellent Idea!

  16. Joe M

    I am almost sure TechCrunch is getting more then an ad exchange for putting that spottt ad on their site.

  17. steve

    Also, I like how Entrecard doesn’t take any of the impressions for themself. When you pay credits to be on a blog like ProBlogger, your ad is on there for every page load for a solid 24 hrs. Spottt will probably bomb quick because, as lawrence pointed out, this is for the middle ground. If spottt did their research, they would know this middle ground is bloggers, and bloggers aren’t going to want this spammy junk on their site. They only want to interact with other bloggers with quality content.

  18. Maria

    From the looks of it, these sites look like a spin-off of the successful Entrecard. Entrecard has been on the web for just a few months and have already grown very successful. I like this system very much and these other ones listed at the top of this page really doesn’t seem to offer anything more, if not the very same features, than Entrecard.

  19. Scott | AndroidGuys

    We’ve used Entrecard since early December and found it to be just about the best way to generate traffic for blogs. Zero cost. Being 90 days old, EC already shows that they are geared for the long haul. Listening to feedback and really showing an interest in their users, they’ve already implemented quite a few changes. It’s my belief that they are poised to be a major player in not only the ‘blog’ network, but their business model could help usher in a change in advertising in general. I have no doubts that some of these great features Spottt has, EC will have in some form or another/better.

  20. Darren Stuart

    isn’t spottt an advertiser on this site? wheres the disclosure…

  21. James

    I’m evaluating them on my blog (http://vacuous.blahhger.com) to see what they’re all about. I’ll likely update along the process with my impressions of how the service works, and wether it’s acually delivering quality impressions. I have a feeling it won’t really add up to much, but you never know.

  22. spamcop

    Dear Entrecard,

    Please stop spamming these comments.

    Thank you,
    The Management

  23. Lee Bandoni

    Entrecard is a good idea but I think it needs a major rewrite as its so easy to game (took me about 10 mins to work out how to manipulate it) .

    I signed up to Spott and got 2000 free impressions and best of all the ability to add multiple blogs / sites to a single account. The only concern i have is the 850 pixel rule which means you need to put the ad at the top of your site.

    My only other suggestion would be to clean up the code you use to embed the ads as right now its a table which is very long due to the encryption.

  24. StanHayes

    Microsoft behind a company that is ripping off someone else (Entrecard)? No way! Couldn’t be!

  25. max

    This seems like BlogRush to me, same idea, different ad size. I just hope it’s not a hype thing again… I will wait until it takes off before I sign up for it, I don’t want to get dunked on by like the BlogRush guys…

  26. TheDuhMoment

    I’ve got to say this is an interesting idea, but I fear the people who would use it are the same that would prefer not to have an add for competitors products on their site. Might be a good fit for small blog sites, though.

  27. Phil Butler

    Wow Michael,

    Now I know why you are too busy to answer my emails! You are immersed in the resurrection of questionable services on TC. :)

    Seriously, when are we going to the next phase of Web (whatever)? I guess you are right though, this is for some people. I just wish a GREAT story would emerge so that your talents spent on link farms. Answer my mail …it might be as important as this :)

    Always,
    Phil

  28. EH

    Wasn’t Adbrite once a Comet Cursor or HotBar type company?

  29. Michael Arrington

    yeah i agree. let’s slow down on the entrecard spam.

  30. Michael Arrington

    …adgridwork, however, looks legit. will add it.

  31. clint

    Entrecard needs some love to they offer the same thing lol.

    http://www.promomaker.blogspot.com

  32. Tom

    stupid name , but it will work because websites will use it.

  33. Alex

    cool idea!

  34. Technicle

    Time is ripe to do so, to welcome the bubble back…

  35. Zapped

    tony didn’t found zappos. nick swinmurn did. tony was an investor and now the ceo. get your facts straight!

  36. Sid Puri

    Currently in Indian space we dont see impact of model similar to link exchange. Link exchanges which are evolved versions of webrings dont see much traction due to lack of middle tier websites with ability to give >10,000 impressions per day.

    Currently demand is greater than supply in our market and till the time it changes all type of reminent inventory will get monetized.

  37. adityaw

    Yay, free credits! Thanks Michael …

  38. C-Squared

    You fail hard for not writing about Entrecard.

  39. AdGridwork

    #2 Startups - Thanks for the support … we’ve been around for over a year now with over 20,000 sites participating and have yet to see any love from any of the Web 2.0 bloggers … ah well, maybe we should get a big marketer (John Reese and BlogRush) or an established company (AdBrite and Spottt) to feel the TC love :)

    #36 Sid - Actually thats a flawed assumption. If the network of ‘exchangers’ is large enough, each of the sites participating can leverage the reach of that network to get a decent amount of traffic. Obviously you will not get 1000s of visitors a day from a FREE link exchange / advertising network, but the real estate given to the advertising space is a price that many smaller bloggers and less established sites will gladly pay for 100 or so extra visitors a day.

    Nick
    AdGridwork.com

  40. max

    How about a review for http://sitehoppin.com ?

    You don’t even have to sign up, we just send u free traffic. lol… and we get drunk more than all the other guys.

  41. Michael Arrington

    entrecard has basically now been banned from techcrunch.

  42. Scott | AndroidGuys

    It just so happens that I use Entrecard. I’m a regular visitor to TC, but this is twice in less than a week that I have commented. Last week I felt compelled to tell the truth when you guys erroneously declared “Android Delayed Already.”

    For those watching at home, TC was shown the results of not fact checking a product or service last week. I think it’s kinda sad that Entrecard didn’t even get a mention in your post above. Even as small as “For a similar service, you might be interested…”

    Could it be because Entrecard didn’t offer you guys up a bunch of free credits for a mention? Surely someone with nearly 670k subscribers doesn’t need to sign up on their own for help.

  43. Michael Arrington

    adgridwork - you don’t need to hire a big marketer, just try sending an email.

  44. C-Squared

    “entrecard has basically now been banned from techcrunch.”

    [deleted]

  45. Michel (ShipPal)

    Quick comment about the name - I discovered it while writing an email to a friend: the site URL is http://www.spottt.com (with 3 T’s, not 2…)

    http://www.spott.com is an empty site….

    This is a real bummer guys.

    See posts #11, #23, … like me, they thought it was ‘Spott’.

    You will miss a lot of (viral) traffic because of this.

  46. Lisa Brewster

    You wanna hear about Entrecard? I’ll tell you about Entrecard.

    The service is basically a small blog geared link exchange based on a click economy (reminds me a lot of whuffie if you’re a Doctorow fan). Visit a site in the network and “leave” your card for the author. Both sides earn a credit, which can be used to purchase ads on other sites in the directory.

    For new or really small blogs, especially people who aren’t already swamped with sites to read and want to connect with similar blogs, the service can bring you traffic and commenters to get off to a good start. But as a PR4 / 200 subscriber site, it takes way too much time to evaluate blogs to campaign with, approve advertisers, and keep dropping those cards to keep your value up. My time is worth more than what it takes to build up enough credits to start doing anything with, but I get 10x more traffic from other Entrecard users than I do from purchased (and supposedly targeted) ad impressions anyway.

    For my purposes, a passive service like Spottt would probably suit me just as well.

    http://www.sophistechate.com/1.....pportunity

    Disclaimer: They sent me a tshirt.

  47. Jenkins

    I feel bad for AdBrite. They try so hard but can’t seem to get bought.

  48. Michael Arrington

    c-squared - do you really think a comment like that is going to remain on the site?

    I’m sure entrecard is awesome for you. But when i checked it out last year I felt that it was too much administrative work for the amount of traffic that could be expected, and didn’t see it working. I make calls like that every day. Often revisit them. But this kind of spam attack is not going to get us to write about them.

  49. John Cow

    Are images allowed in the comments? If not, http://www.johncow.com/images/droppedit.jpg

    :D

  50. BinaryDay

    @Michael,

    Request you to please check with google if participation in Spottt will amount to link exchange. Because link exchange is against adsense tos. Many publishers may get into serious trouble if google starts cancelling their accounts.

    P.S: I have indeed written to adsense support. However I think there is better chance that you will get a faster response.

    Here is a link from adsense blog which says
    **********************************************************
    We occasionally receive questions from publishers interested in using traffic exchanges to bring traffic to their site. While these services may help advertise your site, we don’t recommend using them, as they may also result in similar invalid activity
    **********************************************************
    http://adsense.blogspot.com/20.....grams.html

  51. Michael Arrington

    binaryday - this isn’t an SEO activity (there’s no actual link from one site to the next), so it isn’t a problem with google or any other search engine.

  52. C-Squared

    Entrecard wasn’t even around last year, Michael. And again, you’re ignoring the fact that it has striking similarities to Spottt.

    [deleted] Enjoy your censorship.

  53. Michael Arrington

    mmmm. you sure about that?

    oops, you can’t respond. you’ve been banned.

    It amazes me when people think they somehow have the right to literally say anything in the comments.

  54. Joshua

    Just thought of another reason why services like these are useful. Smaller sites that want some advertising to fill their slots to look more appealing for future advertisers. It is a turn off for an advertiser to be the first one. Having a couple slots filled with exchange ads at least helps fill that space until other ads are sold to replace it.

  55. Ryan

    Why is this a good idea? This is being done already by dozens of banner exchange networks that give way better than a 1:2 ratio on impressions. There are networks like this for many targeted niches such as gaming, film, blogs, etc.

    The only thing that’s good about this is that Adbrite is behind it, and it will one day give advertisers a way to advertise on small niche sites that wouldn’t normally run adbrite/adsense.

  56. BinaryDay

    @Michael,

    I did not mean google search engine but adsense TOS. They clearly say that they do NOT recommend traffic exchange programme. I hope I am not panicking but if google decides that this programme is against adsense TOS, then many small publishers may get into serious trouble.

    Thanks for responding.

  57. Michael Arrington

    binaryday - I’ll defer to adbrite to respond.

  58. Ryan

    Some examples of 125×125 traffic exchange networks for arcade/games that tend to offer a 10:9 exchange ratio

    Arcade Banners - http://www.arcadebanners.com
    Player Traffic - http://www.playertraffic.com
    GamerFlux - http://www.gamerflux.com
    FunKlicks - http://www.funklicks.com
    GamersBanner - http://www.gamersbanner.com

  59. Ronald Lewis

    Let’s not forget the issue that TC and everyone else ignored when Spottt was first announced:

    http://ronaldlewis.com/2007/09.....es-exposed

  60. AW

    Spottt looks interesting, but I’m not really digging the banner-ad model for link exchanges. I think most people tend to visually tune it out, plus to make a decent one takes a lot of time. I prefer text ads since writing the copy is easy and it kinda makes you go :).

    Thanks for whoever link-dropped adgridwork.com though — looks like a winner to me. And it’s not pink (BONUS POINTS).

  61. mc2w

    Adbrite sucks, and everyone here knows it. So why trust a ‘new idea’ they are coming out with, which is just a simple clone of Entrecard?

    Worse yet: they allow animated ads. They will probably allow users to put their 100+kb ad on other sites without their consent, by paying them money. And trust me, this is going to fail as quickly as Blogrush.

    Entrecard FTW: http://www.entrecard.com

  62. Lisa Brewster

    #61 @mc2w: It’s not a simple clone, and anyone actually using the service instead of gaming it can see that pretty easily.

  63. JoeTech.com

    This doesn’t compare in the slightest to Entrecard (http://www.entrecard.com), who hit the scene a few months ago and have already revolutionized the ad space with this idea before AdBrite.

  64. Michael Arrington

    JoeTech - yes. “revolutionized the ad space.”

  65. CanCar

    If spottt did their research, they would know this middle ground is bloggers, and bloggers aren’t going to want this spammy junk on their site. Spottt will probably bomb quick, this is for the middle ground.

  66. JoeTech.com

    Michael - You’re right I exaggerated. I guess I’m just trying to point out that Spottt is a little late to the game and barely even in use, so I’m curious how you could completely miss Entrecard but manage to post about Spottt, which does seem a lot like Entrecard, only not as community-based, perhaps. I have nothing against Phil and AdBrite. The guy is smart and develops smart stuff. I just don’t see Spottt unseating Entrecard.

  67. Øyvind

    How much is it for the dog?

  68. AdGridwork

    @Mike Arrington - We went that route back in Deecmber of 06, however the site was less developed and much more minimalistic. Must have missed us in the queue :)

    @Joe Tech & All the EntreCard lovers - The main problem with Entrecard is that you need to constantly participate in the service to reap its benefits. You need to drop your card on others, have others do the same, scour their ‘campaign’ page (crappy name imo for a directory of advertisers, but I digress) for sites to advertise on, create a flashy graphic button, etc. This is a lot of work for most advertisers who are used to the traditional Adwords/CPM model of being able to target their niche/demographic and let it fly on autopilot. This is hardly revolutionary and in some cases a pain in the ass.

    Nick
    AdGridwork.com

  69. JoeTech.com

    AdGridwork: I actually managed the top spot at Entrecard while not actively participating, but then that’s in large part to the Entrecard Slots and Free Ad Slots games I made. I think you get what you put in and that can be in the form of active participation, existing traffic (which would work the most in Spottt), or in my case, an idea that gets people to come and drop their card all day long. On a side note, I probably visited your site around the time you refer to above, so I’ll check it out again and see if it appeals to me.

  70. Suzanne

    I noticed the Spottt ad on your sidebar. Perhaps this isn’t really an objective review, after all. Maybe it’s even a paid review …. oooohhhh. Most people know that Adbrite, the co behind Spottt is Adbrite, which does not have a good reputation … just Google Adbrite and Scam

  71. Russell Rodney

    Adbrite is known for these innovations but they always seem to go nowhere, I know of no one using their video or brightpic products. Neat idea but where will it really go? The clock has to be ticking for these guys.

  72. Michael Arrington

    suzanne, thanks for the accusation. read the post, i mentioned we were testing it.

  73. Jenkins

    Suzanne certainly raises questions that you should know people have on their minds. Your defense of Adbrite is a bit unusual.

  74. Michael Arrington

    Jenkins - what defense is that?

  75. rubu

    On a side note, I probably visited your site around the time you refer to above, so I’ll check it out again and see if it appeals to me.

  76. Lakersin08

    Michael I like the new “You” fighting haters and spammers punch for punch…..way to go man!!

  77. Melvin

    They need to create a Facebook application.

  78. Darren Stuart

    got to be a record for Mike responding to comments.

    Can you clear this up, in the thanks to the sponsors post that mark just did you have down spottt as a sponsor but in the above comment you say you are using the service. which is it?

  79. Graham Langdon

    Graham Langdon here, founder of Entrecard.

    Ok, things got a bit out of hand here and we’re sorry about that. There’s no excuse for spamming someones comments, especially when the site owner has made it clear they’d like everyone to stop.

    We are utterly proud of Entrecard and we really feel we’ve created a great thing, and when Techcrunch started talking about something so similar in some ways to us, we jumped at the opportunity to get our message out so we could help even more bloggers find the support they needed to take their blog to the next level. To be fair, Entrecard members are also acutely aware of my personal campaign to get covered by TechCrunch, which included commissioning artwork for Arrington, sending a multitude of handwritten letters, all of our stats (2m pageviews per month, 1200 weekly average Alexa, 3x growth in 30 days, etc).

    But we’re sorry that things got out of hand the way that they did. We do stand by our service, and as you can see so do many of our users. Best of luck to Spottt, we look forward to taking a look once the dust has settled. The 125×125 market is big enough for both of us..although we also look forward to crushing them in the nicest possible way :)

    We have asked our users to stop posting here, but hope to see some of you in the future.

    Regards and respect, Entrecard

    PS. Just for the record, we consider Entrecard a social network primarily, a traffic builder second, and a marketplace third.

  80. Hawaii Vacations

    Interesting service that I may have to check out

  81. Graham Langdon

    Oh and I posted a message on our forum kindly asking all our members to stop posting comments on this blog post. So hopefully all this will stop. Again, terribly sorry.

  82. Goldie Wilson

    @Melvin

    Spottt on!

  83. Michael Arrington

    Darren - I don’t think Mark knew they were just there for testing. They’ve been removed.

  84. Austinite

    wow, these Entrecard folks seem more fanatical than Ron Paul supporters

  85. mc2w

    Just a little extra debate

    @Adgridnetworks:

    Entrecard was designed to work for SMALLER bloggers, that’s why they are looking towards a free advertising program in the first place. Small bloggers won’t find ANY benefit from a program such as adbrite if they don’t have the visitors in the first place to generate credits.

  86. JoeTech.com

    @ rubu : your comment looks strangely familiar.

  87. clint

    Well everyone I tried spottt out along side by side with entrecard,I got 9 hits from entrecard and 1 hit from spottt..This is in the last few hours of testing it.
    Ill let spottt run for the next few days but if I don’t see any change I will definally pull them from my site,Lets face it that 125by125 ad spot can bring much more then it has so far.

    I think the numbers will show in the long run..

    clint
    http://www.promomaker.blogspot.com

  88. Graham Langdon

    Joe, mc2w, can we stop talking about EC please?

    The next Entrecard member to post another comment here WILL be penalized credits. Mr. Arrington has kindly asked everyone to stop and damnit we will respect his wishes.

  89. antje wilsch

    hey - i just want the dog…

  90. honestmall.com

    entertaining read.

    Clint I look forward to reading a follow up of the actual results of both systems.

  91. uploadchoice

    Nice idea, but 50% of the ad inventory for itself looks too much for themselves.

  92. Darren Stuart

    @Mike fair enough I guess he just looks at the sponsors bar and does the thanks.

  93. w2i

    BinaryDay is right Google AdSense’s TOS do not allow whatever form of participation in traffic exchange programs where the contextual aspect of the traffic is ignored if you run Google ads on that particular site/page. It is possible Google thinks those forms of programs are artificially increasing the traffic of the sites involved vs. the organic visitors, which on the other side is lessening the contextuallity and relevancy of the traffic being exchanged. This, I guess, surely results in fewer clicks on Google’s contextual ads displayed on the sites participating in programs like Spottt and from here the Google’s antipathy towards traffic exchange programs…

    My 2 cents

  94. Lisa Brewster

    Even though Spottt allowed me to place my blog into a category, it won’t tell me what sites my ad is getting shown on. Funny that all I’ve seen on mine are TechCrunch and CrunchGear. =]

    Oh yeah….77 impressions, no clicks in. Five clicks out. Shocking.

    Can’t there be a happy medium? Something I can finely target if I have time, but has a smart enough autopilot when I don’t?

    Maybe I should save that 125 pixels of my sidebar and devote all this time to commenting on other blogs I read.

  95. steve

    This is the problem with spottt, in my opinion. Just cruising the internet, all I’ve seen is spottt advertising TechCrunch and CrunchGear. I guess 4 million daily impressions convert into alot of spottt exposure, drowning out all the other members.

    I agree with Lisa, there should be a middle ground where smaller blogs can get decent exposure and clicks.

  96. Cheap Book

    Tried it out and TechCrunch ads are all that show up on my site. Obviously nobody who has joined so far can match the pageviews that TC delivers.

    Overall I think it’s a cool idea and all the competitors mentioned look to have a good twist on it.

    I don’t see myself leaving the ad on my site for long but it’s worth a shot!

  97. Frank

    This works great so far. This led the Knight Knetwork to coin “Spottt Hopping” - http://knightknetwork.com/2008.....-hoppping/

  98. lee

    this chart pretty much sums it up:

    http://leedoyle.com/wp-content.....spottt.PNG