Isn’t it funny how more and more things are being paid for by advertising while at the same time we all get more and more irritated by advertising being everywhere.
The New York Times have stopped their paid subscription service in favor of free access. This is a subscription service that made them 10 million dollar a year. They now feel that they can make more money on advertising.
Somehow I sometimes get an uneasy feeling about all those things that are being paid by advertising money. Somehow I still think this business model has it’s limits. Let’s do a thought experiment:
Imagine that more and more companies are making money by mixing ads with the service they deliver to us. OK, let’s be really wild: imagine that all services are being paid for by advertising. Would that not be great: all services are free, all we have to do for it is accept some adds (and many we can block them?).
Problem is: who is going to pay for all these ads. The companies that make their money by selling ads together with their services will of course not be advertising, at least they will advertise less than they sell ads or they will lose money. So if everybody will give their services away for “adtention”, who will pay for the ads?
I can understand the business model of Google search. Since through the search I am implying what I am interested in I can imagine that an ad on that subject is worth money. But only if the one advertising his services is getting paid cash when he sells his product or service. When the advertiser is also getting paid by ads than it is starting to look like a pyramid scheme.
And we all know where these end….