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Adtention economy

I came acros this interesting article about the value of clicks on adds on the Internet. Since advertising is beginning to look (Seem) like the holy grail to keep the Internet free for use it is amazing how little data there is on how and why people click on adds and what the real effects are. The following result out of the study is interesting: What did we learn? A lot. We learned that most people do not click on ads, and those that do are by no means representative of Web users at large. Ninety-nine percent of Web users do not click on ads on a monthly basis. Of the 1% that do, most only click once a month. Less than two tenths of one percent click more often. That tiny percentage makes up the vast majority of banner ad clicks. Seems a lot of research is needed to really understand how the relation between audience, click rate and real economic effects will be clear.
2007 12 03 Martijn Kriens businessmodelTags: , Comments (0)

Long tail, small earnings?

In a post from "The long tail" a small movie director has written an interesting e-mail to Chris Anderson. But the reality at this time for me and my company is that I need to find multiple large national distributors if I hope to even come close to making a living at this game. And I need to produce fresh content on a reasonably frequent basis. In short, I am a much smaller and more struggling version of the giants that have preceded me. Your Long Tail theory is a basic and profound truth that I happily embrace AS A CONSUMER. But as a producer and creator of Long Tail content it is basically spelling out my doom. Other than your book examples which are still basically about VERY LARGE entities and aggregators, I am finding very few self supporting examples of independent Long Tail producers. The general idea of the e-mail is that the long tail with niche content is nice for the consumer but that it is hard for the producer. Fundamentally there are only a few customers in the long tail so ...
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2007 09 29 Martijn Kriens long tailTags: , , , Comments (0)

The Times are changing

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 ...
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2007 09 20 Martijn Kriens businessmodelTags: , Comments (0)

Talent and Scarcity

Open Source, Wikipedia and others attract lots of people who spent lots of time in adding information and improvements. All for zilch, noppes, nada. At least financial terms... Some think this is the way of the future. All new paradigms first attract the idealistic people. In the first days of the Internet commerce was simply not done. Flame wars should not be stopped by imposing rules and enforcement but by netiquette. Funny thing is that many of these idealistic first users also happen to be a bit anarchistic. This seems logical because these are the people that venture into the uncharted territories precisely because of the lack of rules there. I feel sympathetic to that. While reading the book of Yochai Bankler you get the feeling that we are on a new era of the altruistic society. I would love to believe this but I don't buy it. In 1982 Güth, Werner, Schmittberger, and Schwarze wrote an essay with the title: “An Experimental Analysis of Ultimatum Bargaining,” (Journal of Economic Behavior and Organization, 3:4 (December), page 367). In this they laid down a special version of economic game theory called the ultimatum game. The game goes like this: There are two ...
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2007 06 04 Martijn Kriens social networksTags: , , Comments (0)