"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 -
Web developer Justin Watt
was staying at the Courtyard Marriott in Times Square, New York
and using the hotel wifi to access the Internet. He noticed some strangeness on his website... and on every other website he visited
(not to mention YouTube was broken.)
posted by gen
on Apr 5, 2012 -
'Illinois wants Amazon to collect 6.25 percent sales tax and send it back to the state.' Amazon fights back.
Under current law, only companies with a physical presence in the state have to do this, but the new bill declares that even having affiliates in Illinois counts as "presence." 'An e-mail sent from the company to all of its Illinois affiliates this morning warns that, should Illinois Governor Pat Quinn sign a just-passed tax bill, Amazon is cutting off every affiliate in Illinois.
"We regret to inform you that the Illinois state legislature has passed an unconstitutional tax collection scheme that, if signed by Governor Quinn, would leave Amazon.com little choice but to end its relationships with Illinois-based Associates," said the e-mail.' [more inside]
posted by VikingSword
on Jan 7, 2011 -
Today, Deadspin leaked financial documents
detailing the finances of several MLB teams, including a few that are getting revenue sharing money. They show that several of MLB's "poorest" franchises turned a profit due to these cash infusions. [more inside]
posted by reenum
on Aug 26, 2010 -
The hugely popular iTunes
is a success story. But not for Apple, which makes virtually no revenue
from the online download service.
"When that 99 cents leaves your wallet, the RIAA monopoly swallows most of it, and the credit card companies swallow the rest. As the supplicant in this relationship, Apple is left holding the can.
" Steve Jobs -
"We would like to break even/make a little bit of money but it's not a money maker,"
posted by Blue Stone
on Nov 7, 2003 -
Salon tightens its belt...
No surprise there, things are tough all over. But what caught my eye was a quote in paragraph 5 from an industry pundit who said he "hasn't seen any site that can be profitable with a revenue base of less than $15 million per quarter". What future does the web have if every site that creates its own content has to bill $60 million a year?
posted by BGM
on Jan 31, 2001 -
Amazon dead by Mar 19, 2001
Just thought you like to know the exact time of death of Amazon.com That's according to Downside's Deathwatch is a cash-flow analysis. The death date is simply the day the company will run out of cash, based on their reported liquid assets and loss rate. When the cash runs out, something bad for stockholders has to happen.
posted by lagado
on Oct 23, 2000 -