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Download Distribution
David Fishman 
 

Downloadable software application and their distribution is an advertising medium that is accomplishing fast growth for online marketing. Let’s discuss the distribution side of this vertical. The opportunities and companies capable of providing significant levels of distribution for a downloaded application are much less available then if you wanted to find distribution for an advertisement on email. (The number of companies that offer significant levels of download distribution is much less than that of other, “more mature” industries, such as Email). However there are relatively few distribution sources for downloads.

It is easy to find large companies who have gigantic distribution networks, such as Kazaa. However, to find smaller companies with significant distribution is more difficult. Many of these smaller companies have consciously done a good job keeping their names and level of public awareness low. One reason for keeping public awareness low is that the download space is a very controversial space. In fact, a law is set to go into effect May 28, which could make it very difficult for adware companies to do business in Utah.  Claria, one of the largest Adware companies, has said that the pending Utah legislation would make it almost impossible to do business in Utah. 1 Until this vertical becomes regulated at a Federal level, it will become more and more difficult to trust those who provide distribution while adhering to Adaware laws in other states (currently Utah is the only state with a law that has been passed by a state legislature; however, several other states have proposals circulating). Currently there is little to no regulation or recourse available within the download space.

Finding brand name companies is simple. However, companies like Kazaa will only work with a limited number of partners; thus to find distribution with other small providers takes a great deal of time effort and energy in networking and research. This space has an incredibly valuable potential and can generate spectacularly high levels of distribution. In some cases a powerful distribution channel is capable of connecting with over one million potential customers a day. The chance to offer this level of exposure to any advertiser is extremely appealing.

Distribution formats can come in multiple ways. Some come through an ActiveX where a certificate pops up on your browser and you give permission to the application to download. Others come in the form of being pushed through a network where the user can see a pop that asks them to download through an advertisement. Both of the above scenarios can also come in silent or non-permission based forms where the consumer is not aware of an application. In short, permission based downloads either come through an ActiveX application or a pop that redirects to a site. Silent downloads come in various formats that can be downloaded onto a desktop through software that is sometimes already on your computer or brand new software. The distribution modes are important for advertisers to work with since they must make certain to build applications that are small enough to be easily placed within the already existing networks.

The future will hopefully be filled with honest companies on both sides of the coin. Distributors and advertisers need to come to the table with an honest and open understanding of what they want to do and what it will take to get there. Currently payment models including prepayment methods along with relatively large tests are discouraging companies from testing this space. Prepayment is always a risky scenario while providing downloads to an advertiser and never being paid is also risky.

The maturation, growth, and regulation of this industry will bring about reputable companies making it possible for more advertisers to expand into this space. Distribution partners will find more comfort and security in their business that will open up this industry to more and more advertisers.  This will push up the opportunities for growth and success to an even larger market. 

  1. http://news.com.com/2100-1024_3-5190880.html
  2. 2. http://biz.yahoo.com/prnews/040415/clth025_1.html

 

 

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