Online Advertising is Dead..

... if it was ever really alive.enjoying". So it's more of a soft-sell.
You know the main problem of advertising online?Take that message online and it doesn't really
People hate ads.work. How can you make an interstitial page into
Way back in Internet history there were banners...a "soft sell"? Apart from closely targetting it to
especially run-of site banners, which advertisersthe page the visitor last saw, and the page they'll
bought per thousand impressions. I thinksee next, there isn't much you can do. It's still an
advertisers were paying up to $30 CPM forad.
run-of-site banners. I remember selling some toSo are Adwords/Adsense ads being "tuned out"
Entrepreneur Magazine... although I don'tlike banners were?
remember how much I charged them.Are website visitors rebelling against advertising in
After a while, banners were "tuned out" by sitegeneral?
visitors, clickthrough rates nose-dived and theAccording to the Telegraph, the huge "Web 2.03
cost per thousand impressions fell through theproperties are struggling to turn huge numbers of
floor.site users into cash. Apparently, "Mark Zuckerberg
What did advertisers do?apologised to Facebook users for the "bad job"
They started to pay (now part of Yahoo) perhis company made of implementing Beacon, a
click... and the Pay Per Click industry was born.controversial new advertising system that exploits
Google took this form of advertising to newthe power of 'word of mouth' marketing."
heights with their Adwords/Adsense system... andOh dear.
very clever it is too.The problem, for Facebook, is that they have
But the fact remains that people don't likehuge numbers of competitors... and those
advertising. Take a simple example... what do youcompetitors will be quite happy to undercut
do when you're watching a movie and the adswhatever revenues Facebook generates... and
are shown? You head to the kitchen for a snackWeb 2.0 users will be quite happy to go to
or drink, right?whatever Web 2.0 website that offers the least
Advertisers got wise to that trick, so theyadvertising.
decided to "sponsor" a movie and have a littleSo we're left with a dilemma which has existed
mini-ad before and after the movie segments. Isince the Internet was born... if people are free to
guess you're more likely to see it because youdecided which websites they want to visit, and
haven't yet left for the kitchen, or have just gotthere's intense competition for website visitors,
back from it to see the next movie segment.can website owners afford to put advertising on
Also, the message isn't, "buy our stuff", it's more,their websites? On the other hand, can they
"we're good guys sponsoring the movie you'reafford NOT to?