Discussion with Magnify.net on AdShare Network Launch

I had an opportunity to speak with Magnify.net CEO Steve Rosenbaum earlier this week. Magnify.net is a NY-based startup which allows you to create video channels to expand the content on your blog or Web site. At least that is what I thought it was before I spoke with Steve. Steve began by stating that Magnify.net is actually a full social networking tool, similar to KickApps and Ning. Steve is working on updating messaging with a subtle shift to expose more of their social networking features. There are 8000 current sites using Magnify.net.

We went thru a full product demo and I was very impressed, especially with the video search features. It seems like a great way to add content to a site without doing anything. Set up the filters once, and Magnify.net will continue to add content as you have indicated.

The announcement tonight is around their ad-share advertising program. Basically it's simple, you can utilize the Magnify.net ad network and you earn 50% of the revenue generated from your impressions and ad clicks. And if you use the settings I mentioned above, fresh new "ad impressionable" content appears daily. Steve noted that they also offer an ad buyout program whereby you can "buy" the impressions at a rate you negotiate with Magnify.net and then you "own" the full 100% of ad space.

These ad programs are similar to KickApps except that KickApps gives you one of two locations and they own the other ad slot. The ad buyout program is the same for both services.

From the official announcement: “We see the next 24 months as a critical turning point for ad dollars. By launching the AdShare Network now, we’re giving our users a head start in determining what advertising strategy works best for them, their advertisers, and their visitors,” said Steve Rosenbaum, founder and CEO of the Magnify.Net team. “Each day we see power shifting from Madison Avenue to Main Street — and a new economy is growing up around video-centric communities of content. This means that individuals or small businesses with passion can become the central place for content consumers. And that’s exciting.”

The team is currently made up of three developers, a CEO/CTO/CFO, and a biz dev person in San Francisco. They supplement the full-time staff with a few additional developers. They are actively recruiting for a biz dev person for the east coast. They raised a 1.2 million dollar angel round and are looking at a full vc round in the near future. Three developers seems a bit light, they are certainly leaner than their competitior up the street, KickApps who has 40+ staff.