May 5, 2009

Advertising revenue and paradigm shifts

Advertising on the internet

Advertising on the internet

Have you seen “Why Advertising Is Failing On The Internet” by Eric Clemons?

Reads partially like another “pay for content” scheme. But it is totally true that most premium (and non-premium) content creators cannot sustain their business models based on their current advertising model.

NYTimes.com could not support its robust site and content without the proceeds from its print counterpart, leading to a vicious cycle of reduced content value as print ad revenue decreases.
But the ROI can be there for advertisers without a tremendous intrusion on site visitors and without the publishers/content creators having to bleed too much. It all depends on business models and costs of ad space.

Does this result in a shift in media planning?

Sure. But it’s a shift that has been under way ever since ads have been able to track ad-X-results-in-sales-Y transactions.

And, as for changing ad tactics on the web, the fluid nature of the web has allowed for continual evolving and refining of web advertising.

Look at the popularity of search. It developed due to the way users now seek out information on the web, and is why the verticals market has somewhat dried up as an ad option. And, as users continue to find new ways to achieve their goals online, ads need to evolve with the users to best suit the medium that is the web.

As for consumers not needing advertising, and organically deciding they need Product X? Let’s just say that it’s odd that Eric Clemons cites dpreview.com as an example of an independent review site driving consumer purchases. The site exists in part off the backs of its advertisers, with visitors coming to the site due to their perception that they need a digital camera. The entire PR process of getting the proper information to the proper review sites is also advertising. To view these placements as not being funded by a manufacturer’s marketing budget seems a little shortsighted.

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