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Re:As a VC, how is a $41 million investment in Color justified? by zaidf on Sunday March 27, 2011 @10:01PM (#2376787)
Simple:

(1) spend 30M acquiring bunch of high-usage apps with lil revenue

(2) collect anon user data

(3) license / sell data to ad firms on ad exchanges and more

Most of HN has no idea how crazy the ad exchange business is because they are pretty tightly controlled and require high minimums to play. I wouldn't know if I didn't have a brother working inside day to day.

Suffice to say, there is a flourishing market where anon user data is bought and sold for millions to improve ad targeting.

One great example is rapleaf. When they launched, I was like "meh, another reputation management co." Turns out they are doing alright doing what I describe here. Yet if you simply judged them when they launched or from their consumer front they put up, you'd never know.

Re:As a VC, how is a $41 million investment in Color justified? by alanfalcon on Sunday March 27, 2011 @10:21PM (#2376840)
A good time to mention the NAI Opt-Out page:

http://www.networkadvertising.org/managing/opt_out.asp

Re:As a VC, how is a $41 million investment in Color justified? by zaidf on Sunday March 27, 2011 @10:48PM (#2376913)
On the topic of opting out, I personally like that the ads have become a lot more targeted in the past year or so.

Especially the re-targeting stuff...I'd much rather see ads for products I already have some level of interest in than the days of random punch-the-monkey and drugstore.com ads.