On-line ad revenue, an untapped jungle

Tom Dougherty, CEO – Stealing Share

13 July 2009

The challenge of on-line media. Who pays for it?

Apparently media moguls have gathered at Sun Valley Idaho this week to make strategies and plans to increase advertising revenue.

The big challenge facing them today is to figure out how to get revenue from viewers of on-line media (like YouTube). They are trying to sort out if the media and/or content gets paid for by subscription (as if anyone is willing to pay for anything that comes to them on-line) or by advertising (as if anyone actually pays attention to on-line advertising).

Do I have the answer? No, I do not. But I do know what the problem is and that is at least a start.

The problem is rooted in an understanding of the value equation.

You see, value is directly linked to something’s intrinsic scarcity. The harder an item is to get or possess, the more valuable it becomes.

The problem with media today is simply overloadtoo many choices (most of them bad) and too much of  second-rate content.

So, why should the viewer be willing to pay for things that they have been getting for free? Why should the viewer really pay focused attention (which is how advertising works) to content and programming that is so mundane and commonplace that it lacks all sense of urgency?

Media companies need to address a couple of issues if they want to make money going forward.

  1. How do they increase value by fostering scarcity? This seems to me to be the antithesis of Time Warner Inc’s “TV Everywhere” and Comcast Corp’s “On Demand Online”
  2. How can they make their programming more important so that we actually pay rapt attention to the content and therefore pay attention to the marketing messages that accompany it?

If the solutions were easy, they would be, as Napoleon once said, the providence of mediocre minds.

See more posts in the following related categories: Advertising Online advertising Time Warner Time Warner Cable


Submit a Comment

Your email address will not be published. Required fields are marked *

Walmart grocery delivery to overtake Amazon?

  Walmart grocery delivery   Tom Dougherty, CEO - Stealing Share 19 February 2019 Walmart grocery delivery to overtake Amazon? I hate grocery shopping. Let me say that up front. Every Saturday or Sunday, we trek to the nearest Harris Teeter and pile our cart...

Measuring TV advertising effectiveness

  TV Advertising Effectiveness   Tom Dougherty, CEO - Stealing Share 18 February 2019 Measuring TV advertising effectiveness I found a new study utterly hilarious as it says as much about the state of TV advertising effectiveness as it does about attention...

How feasible is the Toys R Us return?

  Toys R Us return   Tom Dougherty, CEO - Stealing Share 13 February 2019 How feasible is the Toys R Us return? It appears the rumors of Toys R Us demise are greatly exaggerated. Tru Kids Brands announces that it has begun the Toys R Us return by reopening...

Share This