What is MarSP, AdNet, and IChannel?

When technology creates massive change, new language is needed to keep up with the plethora of innovations. MarSP (marcom service provider), AdNet (advertising network), IChannel (Internet channel), and iMedia (integrated media) is our language for categorizing the innovators.

This new alphabet soup classifies other acronyms to create a framework for keeping up with the many changes in advertising and media. Without this framework, MarSPs, AdNets, IChannels, and iMedia companies have overlapping functions - causing confusion.

Quick History of Media

Advertising on media started in 4000 BC with a picture on a stone. It had limited reach.

Advertising and media expanded with the invention of printing. That occurred in the 15th century. Thus, ad-supported media is a 500 year old business.

Publishing is simple to understand. A small group can manage a publication.

• Circulation managers buy or market to gain a list of qualified readers.
• Editors research and write credible articles.
• Publishers sell advertising to marketers seeking to influence the qualified audience.
• Large media companies consolidate many publications - saving some administrative costs. Independent publishers thrive despite consolidation.

Internet publishing is much more fragmented - harder to understand - but simpler for individual publishers to adopt.

Change Brings Fragmentation

Despite many acquisitions by Google, Microsoft, Time Warner, and Fox to consolidate media properties, technology innovations continue to fragment the market. The sum of the online revenues for these companies represents less than 5% of global and national advertising. Each has the cash flow to acquire many more companies.

Here is our categorization of the innovators.

IChannel (ed: The Internet is capitalized as a proper noun. Thus, we chose the capital IChannel.)

Internet Channels include developments that allow individuals or businesses to become publishers. Tools such as blogs, media sharing, and other social networking sites simplify self publishing. Server computers and networks are not needed.

Anyone can express themselves using words, photos, music, video, or other means of communication. Reporters become publishers - writing their own blog. Game publishers use Javascript or Adobe Flash to deploy games useable by anyone on the Internet. Photographers can post unlimited Flickr photos. Musicians promote themselves on Myspace. Videographers can start Youtube channels. Each is an IChannel with an audience.

Most of the tools are free of service fees - resulting in hundreds of millions of IChannels. Conversely, this trend dilutes the loyalty of the finite population to any one channel.

IChannel can be a traditional web site or any participant in hundreds of social sites.

AdNet

Internet advertising networks consolidate many IChannels and centralize the selling of advertising. Beyond CPM (cost per mille) models; CPC (cost per click) allows any publisher to earn a share of online advertising.

Services for IChannels insert text, graphical, and other ad formats - automatically allow IChannels to earn more advertising dollars with minimal work. New models are likely to change AdNet companies.

The term, AdNet, distinguishes legacy broadcast, magazine, and newspapers networks from their online cousins.

Google may be the largest AdNet, but dozens of new companies have carved new Adnets by market, geography, and need.

MarSP

Marcom service providers have created advertising tools that simplify the task for the largest ad buyers. Tools unify their purchases from many AdNets, create and serve rich media ads, optimize search keywod (SEO) purchases across many AdNets, and generate sales leads using creative strategies. MarSP simplify services for ad buyers.

iMedia

Large, integrated media companies have emerged to consolidate the most successful innovations. This includes acquiring iChannel, AdNet, and MaSP companies to expand their reach of users and advertisers.

These companies become the exit plan that motivates innovation.

Conclusion

MarSP, AdNet, IChannel, and iMedia summarize the categories of innovative companies in the new advertising economy. These terms simplify the memorization and analysis of the hundreds of innovators creating change.

Change creates fragmentation. Maturation leads to consolidation. The ad economics can be simple. This allows hard working entrepreneurs and investors to find niches and create wealth.