The CPM model is changing dramatically (duh). Long tail ad inventory will trend to $0 while premium inventory may actually increase.
Here’s why:
The impression pricing model (CPMs) depends on scarcity (of channels, pages, broadcast spectrum). The internet destroys the CPM model assumptions as new content comes online each day, thus destroying scarcity in the CPM model. [...]
The best piece advice I have received from a friend working in media private equity was this:
“If you have the model and the means to get through an economic contraction with growth, don’t sell now… keep your head down, execute and grow. On the other side of the contraction, your business will be worth MUCH [...]
Engage in the conversation as EA did when a glitch was discovered in their software. Brilliant rebuttal and a great reputation and character builder their brand. Enjoy.
[youtube=http://www.youtube.com/watch?v=FZ1st1Vw2kY]
So this is a post from on the road. (And a great example why the iPhone will win as a plaftorm for developers)
This is a really nice illustration of how social media changes the economics of media production and consumption. Plus its about ice cream too.
[youtube=http://www.youtube.com/watch?v=MpIOClX1jPE&hl=en]
After reading and digesting Publishing 2.o’s Scott Karp’s comprehensive piece on the forthcoming war over data, it seems to me there is an obvious component to the “debate” of data ownership that should be considered here: principally that the war will be over as soon as users realize just how much this data is worth [...]
Design and user experience will continue thier progression to the front of the classroom when the lecture turns to technology adoption and digital lifestyles. Apple will reap the rewards from this trend due to its product-centric design principles.
“Meta” Social networks such as Facebook and MySpace will lose popularity as other more focused niche social networks [...]
In search for the Holy grail of online advertising
I have recently been thinking about the efficacy of the online ad industry’s ability to generate demand.
Its an interesting problem…and one in my opinion, the industry hasn’t solved yet.
The efficacy of search is a result of its ability to satisfy a prior demand. Its elegant. You want [...]
All of the recent hype around “meta social networks” like Facebook and Myspace and their experimentation with new and bold forms of advertising belies the fact that advertisers and users are still on an elusive quest for relevance between themselves and what’s available on the web [...]
Based on recent experiences with Facebook and several blog entries from insightful and skeptical prominent bloggers, it has become apparent that social networking has become a very “commoditized” component of the online experience. Social networking has become a feature, not a destination. In effect, as the web has become more writeable [...]