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Originally Posted by $5 submissions
it is still too early in the game to say NEVER. Expect more changes and some paths might lead to greater monetization. Sometimes, its the people spamming/marketing on social networks that make more money than the site itself. Why? Because the site owner keeps looking for big money while there's bigger money to be made through specific more channels.  |
Maybe not never, but it will be quite a while IMHO. With TV you get 30 seconds as an advertiser all to yourself which means you can control the message 100% and THAT is what matters to advertisers. On-line advertising has always been about traffic and nothing else, that's why the money never came in, advertisers want more than just traffic. Real marketing is about controlling the message, branding your company, etc., and that's what advertisers will pay top dollar for, not some banner or text link stuffed in the corner.
With TV, commercials are widely accepted so if you have a good one, it can be received favorably and even become well liked. With the internet, if an advertiser tries to steal your attention for 30 seconds, they are seen as intrusive and "spammy". The question is, when will the internet be more like TV in regards to the acceptance of commercials?
Look at the success of Apple recently, a HUGE part of that was because of the early ipod commercials that became iconic and later the mac vs PC ads. You could never have that kind of success with an on-line ad campaign and that's why Apple pays 100 times the price for TV ad space over on-line ad space. Same with any other company.
But you are right, often the spammers make more from social networking sites then the site itself, which shows the faults in the business model.
Will it change someday? Probably, but there will have to be a monumental change in the way websites look and function for that to happen. They are simply not able to command premium advertising revenue in their current form.
At least that's my take on it.