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Apr 9, 2008

Sharpen the Blog Focus of the New Economics of Advertising

After 60 days, 200 pages, and thousands of clips, it's time to sharpen the focus of this blog.

Quantity and Shifts of Internet Demand
  • Shift of mindshare from email, news, and possibly search to social networks and possibly social media - this is worth watching. Is lean forward viewing being displaced by lean back participation?
  • A measure of the global growth. Google reports 31% USA search growth. This is usage growth; not user growth. What about emerging countries like China and India where Google is blind with their minority share? Alexa levers savvy users - thus, understates growth in developing nations. comScore and Neilsen don't have visibility on emerging markets.
  • The Apple iPhone kills WAP and brings the billion cell phone users to the full page web. That's the promise. How do we get there?
Quantity and Shifts in Internet Supply via IChannels
  • Open platforms from Facebook, Google, Apple, Salesforce.com, and dozens of iMedia giants spawn a new renaissance of creativity. Millions of active bloggers, video producers, and photographers; 100+ million who have tried; hundreds of millions of daily social network users - are these numbers just the beginning of growth to hundreds of millions of active participants? Can millions of developers provide the glue and implicit web to enable more innovation. 
  • Legacy CMS systems for building the 60 million web and commerce sites have been displaced. Why bother when modern tools are better, easier, and often free?
Supply and Demand for Online Advertising
  • Will the adNet market fragment or consolidate? CPC and CPM may consolidate to one market, but will legacy media cooperate?
  • Is there any difference between an exchange and marketplace? Why do the adNets like to argue?
  • What are the real trends for advertising?

We must support Long Tail economics to sustain the renaissance. eCPMs are too low. If web 2.0 is to avoid the web 1.0 bubble, online participants (and investors) need to be rewarded for their creativity and hard work. How?

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