In late October, CAKE was one of a dozen industry-leading companies that were invited by IBM to participate in its version of the marketing cloud consolidation trend called the Universal Behavior Exchange (UBX). We enthusiastically agreed to be an introductory partner in IBM’s innovative venture. Now, fast forward to adtech: NY taking place this week.
When you are a $350B global mega-tech-opoly like Google, you can abruptly bow out of the affiliate marketing business with a sudden announcement to customers. The shutdown of GAN went something like this: “Find another provider within the next couple of months or else you’re up the creek without a pixel!” This left advertisers panicked and scurrying.
It’s time to do a video conference between your NY and U.K. office. Do you setup a free Skype meeting or do you call your I.T. department and ask them to start coding some half-baked video conferencing software? Wanna build a world-class sales organization? Do you hire the most talented sales folks available and then support them with a best-of-breed SaaS CRM platform like Salesforce, or do you send around rainbow-colored spreadsheets?
The beautiful thing about economics and capitalism is that, unless you are the government, you will not stay in business if you are not adding substantial value to customers.
Google is one of the greatest companies on the planet because they have really smart people who understand this principle very well. Here are three reasons why such very profitable major affiliate networks are adding less and less value to their customers and thus, re-evaluating their business model or just shutting down altogether