The company works with software developers to help them reap advertising
revenues from their applications, adding and tracking advertising much as
ad networks like DoubleClick and
Adsmart place banners on Web sites.
The ad-supported software space has heated up as of late, as software
developers like Qualcomm explore the
model. The action is partly driven by the contention that the shareware
model doesn’t work, and also the idea that companies like Radiate could
eventually be as big as the ad serving players.
One big difference between Radiate and the Web ad serving firms is that the
Radiate system downloads ads to the user’s computer, so ads can be served
and tracked even when the user isn’t connected to the Internet.
“It’s certainly a fundamental change in the way the software industry
works,” said Jeff Ready, co-founder and vice president of marketing at
The company asks users to answer questions when they first download the
software, so it’s able to better target ads. Because of this, the model
allows software developers to forge an ongoing relationship with users, and
even track how they’re using the software.
Radiate has so far signed on more than 18 million registered customers who
use more than 400 software applications. On average, the company registers
more than 100,000 new members to its network each day.
“We’re kind of the quiet giant behind the scenes,” said Ready.
Because those who download and install software are usually more
technically savvy than the average Internet user, Radiate users are an
attractive demographic for advertisers.
But Radiate wants to expand now from quality to quantity. Part of the
company’s strategy involves developing more user-friendly technology to
expand its member base. The idea is to allow users to install a piece of
software on their machine that would then allow them to access any of the
software products in the Radiate network.
The company charges the equivalent of a $12 to $15 CPM for a run-of-network
buy. Radiate currently serves more than 250 million ads a month.