"Advertising is not well.
Though companies supported by advertising still dominate the landscape and capture the popular imagination, cracks are beginning to show in the very financial foundations of the web. Despite the best efforts of an industry, advertising is becoming less and less effective online. The once reliable fuel that powered a generation of innovations on the web is slowly, but perceptibly beginning to falter. Consider the long-term trend: when the first banner advertisement
emerged online in 1994, it reported a (now) staggering clickthrough rate of 78%. By 2011, the average Facebook advertisement
clickthrough rate sat dramatically lower at 0.05%. Even if only a rough proxy, something underlies such a dramatic change in the ability for an advertisement to pique the interest of users online. What underlies this decline, and what does it mean for the Internet at large? This short [PDF] paper puts forth the argument for peak advertising
—the argument that an overall slowing in online advertising will eventually force a significant (and potentially painful) shift in the structure of business online. Like the theory of Peak Oil
that it references, the goal is not to look to the immediate upcoming quarter, but to think on the decade-long scale
about the business models that sustain the Internet." [more inside]
posted by Rhaomi
on Jun 3, 2014 -
Google To Start Selling Banner Adverts
From the that-didn't-take-too-long-department, Google's ad sales VP Tim Armstrong says Google will now start selling graphical banner adverts. One concession to their old mores is that, for now, the banner adverts will only appear on affiliated websites running their AdSense
referral program (as does MeFi), and there is an opt-out. However... "We have no plans to show images on Google.com"
, said Mr. Armstrong "but we are not opposed to it"
posted by meehawl
on May 12, 2004 -