Demand Media mass produces instructional and entertainment articles and videos for Web sites, including its own eHow.com. It generated a daily average of more than 5,700 articles and videos during the
most recent quarter-aimed at landing traffic and advertising. Demand Media is one of the biggest providers of video to Google Inc.'s YouTube. It also supplies articles to an array of sites, including
USA Today and the
San Francisco Chronicle.
Demand Media has historically relied on outside advertising companies, such as Google, to sell ads that appear alongside its
content. Its new strategy is to sell special ad sponsorships that mix content and advertising to big-spending marketers-particularly on its own sites. That way, it can charge higher prices and keep
most of the revenue. So far, the company has registered some early success, landing promotions for Hyundai's new 2010 Tucson SUV and Microsoft Corp.'s Bing search engine.
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