Media Whiz Aquires AuctionAds

This story was first announced on techcrunch

auctionadsIn March of 2006 I was talking to Dave (aka Dillsmack) and off-hand I mentioned that I thought it would be cool if we built an advertising platform that allowed users to write their own ads with their own affiliate code. Within a couple days, Dave showed me ShoeMoneyAds. We opened this platform up, and invited as many people as we could while keeping reins on the hardware. Several hundred people used SMA in this incarnation for many months, with very few changes along the way. During that summer we were in San Jose for SES and some people mentioned that we should add an eBay component to SMA. A few days later Dave had fully integrated the eBay API into the SMA platform and we were serving eBay item ads with each user’s own eBay affiliate link. The system worked, but with no caching in place was not very scalable. That fall, at Vegas Pubcon (notice how much gets accomplished at these conferences) one of the great eBay affiliate program employees suggested that we build a sub-affiliate network using the ShoeMoneyAds/eBay technology. We thought that sounded cool but we were still killing it in the ringtone industry and put it on the back burner.

Fast forward to February of this year our revenue from ringtones was down about 300% and it was pretty obvious we needed to find something new to go after. We had plenty of capital built up from our own affiliate marketing so we could try a few things. I really liked the idea of starting my own advertising network using the eBay API. There were some key ingredients missing though that I needed to hash out before approaching Dave to build it:

1) Customer Service – We had never done any customer service. We are developers/marketers not customer service people. In fact we suck at customer service. If we were going to have our own advertising network we needed to figure out how to do customer service.

2) Payments – There is no margin for error when you’re playing with other people’s money. You need an accurate system, and the people in place to manage the payments.

So I talked to a good friend of mine, Patrick Gavin, who has years of experience handling both customer service and mass payouts from Text Link Ads and I pitched him the idea of AuctionAds. He was game to try it so he ran it up the flagpole over at Media Whiz and we went forward.

I then told Dave that I wanted to move forward on AuctionAds and explained the situation with Media Whiz how they were going to be a minority stake holder in AuctionAds and provide customer support and the mass payment knowledge. At this time I felt it was necessary to bring Dave in as an equal partner in AuctionAds. We structured it so that we both owned 50% each of the company that owned the majority of AuctionAds. This means whatever I made he made also. Dave has been loyal and with me for a long time and I knew it was going to be a ton of work for him on this and I wanted him to reap the same rewards as I would get.

Here we are, roughly one year later. AuctionAds has had arguably the biggest launch of any advertising network, ever. Over 25,000 publishers displaying 300+ million AuctionAds ads per day and all in only 4 months after launch. All the success was not without some growing pains though. We basically came to the realization that we had to make a choice: AucitonAds/ShoeMoney Media Group INC could bring in a staff of people, train them and all that (which we had ZERO experience in doing) OR we could sell the company to someone who already has tons of experience in that area and can take AuctionAds to the next level.

With that I am very proud to announce that today we signed a deal we have been working on for the past 15 days or so. Media Whiz is now the sole owner of AuctionAds. This adds another great advertising product to Media Whiz’s arsenal.

So what is in store for Dave and me now? Well, we have several things cooking πŸ˜‰ Never fear.

About The Author

Comments 97

  1. ismar
  2. Peter Koning
  3. Paul Bradish
  4. PrintnPost
  5. 45n5
  6. Hawaii SEO
  7. Rob Serfozo
  8. Stuart
  9. ToddW
  10. Joe
  11. Get Featured
  12. markus941
  13. doolally
  14. Cheyne
  15. Joe
  16. Mike Mothenr
  17. quadszilla
  18. Mubin
  19. AdVolcano
  20. JeffPosaka
  21. Grivon
  22. RightStarter
  23. Ari Shohat
  24. KeywordDonkey
  25. SonicReducer
  26. Cameron Olthuis
  27. CPA Affiliates
  28. John
  29. Butler
  30. Zac Johnson
  31. Andrew Johnson
  32. Jonathan
  33. Tranix
  34. Paul.
  35. Paul.
  36. Rob
  37. mahdi yusuf
  38. Funny t-shirts
  39. Icheb
  40. Fable
  41. tom huveners
  42. myspace-comments
  43. SomeGuy
  44. Ali
  45. fatgadget
  46. macewan
  47. Deelip
  48. Travel Notebook
  49. gsyi
  50. Pedro Sttau
  51. Jonathan Volk
  52. the buxr widget
  53. Stephen Ralph
  54. Study Guide
  55. Travel Notebook
  56. Eric
  57. Quais
  58. cooliojones
  59. Increase WebSite Traffic
  60. Michael Fultz
  61. Dave
  62. Don@AffiliateWatcher
  63. Pogung177
  64. teddy
  65. The Dino
  66. androo
  67. andrew
  69. CatherineL
  70. Anuj Seth
  71. Chris Nielsen
  72. Joeychgo
  73. BloggingDosh
  74. Douglas Karr
  75. Johny Mnemonic
  76. stupid 3gp
  77. Leonid Shalimov
  78. Jonathan
  79. Joeychgo
  80. Coin Counter
  81. CristiΓ‘n
  82. adsense
  83. tarsier
  84. Life is Colourful
  85. Dr.Internet
  86. Ahoester
  87. Enlargement
  88. Arkadaşlık Sitesi
  89. Matt
  90. η΅ε©šζ–°θž
  91. darren