We commented on the post from Tech Crunch. Here’s what we said:

Yay, yet another vertically-focused ad network! How original, it seems like the business everybody wants to be in. Several companies are also repositioning themselves to be “ad network creators” or providers, like Pulse360 was discussing at ad:tech in New York last week.

So it may make a bit of sense if they’ve already cultivated good relationships with studios and other big movie-related advertisers and just need to expand ad inventory… but unfortunately, in an increasingly competitive ad space, they will be quite limited in how big they can get and will be fighting shrinking margins. The plain vanilla ad network is not going to be sustainable for much beyond the next 12-18 months in our view.

Ad relationship expansion and vertical expertise (usually going together) are certainly something that should be leveraged and is being tapped into to drive this ad network expansion. But general ad networks are getting better; there are going to be increasing margin pressures that will push down the publisher margins to 20% (already we’re in the 30-40% range down from the 40-50% range of the last two years) for many of these networks. With the overhead costs of a really lean ad network organization at scale running in excess of 10%, that doesn’t leave a lot of juice left to flow out…