Outbrain has a lot of influence, money and competitors. According to paidContent, the NY-based company has a huge number of users on the Internet, but few have heard of it. But everyone has seen the “We Recommend” and “From Around the Web” headings at the end of news stories. Outbrain’s recommendations keep readers on a websites by pointing them to other stories. Stories “From Around the Web” take readers to another site, but makes money through referral fees (and Outbrain gets a commission).
Outbrain faces competition from others. Disqus and Wordnik could potentially offer similar services at a lower cost. Outbrain’s CEO Yaron Galai recently fired a lot of his own customers for delivering “spammy content.” That might cut a quarter of the company’s revenue, but Galai believes the move will pay off in the long run. He told paidContent, ”A lot of the clones will show good results for the short term [but will soon fade].”