Man who carries stone – Čovek i kamen
Business model of crisis
I wish crisis would end soon.
It’s just that kind of bad felling that comes along with crisis. Depression and such.
But I would really love it if it would last a bit longer.
Why?
Clients that survive will be ready to go after business, at right price and quality devoted to advertising or meaningful online presence.
In case you are a crook, time’s up, you can not deliver nothing and be payed.
Banner peril
Forcing rock solid and profitable business model beyond it’s life time is nice. In business books, authors call this business model – cash cow.
The real problem lies it the fact that there are more profitable business models, which fit more naturally into online media frames, but medias are ignoring it. Banners are one of them.
We see banners evolve into one banner-like ad per page, giving perception of ad, returning value for client. Too many and you are crooking customer/reader.
We sorted out 3 reasons why media publishers stick to this old business model.
Is it either ’cause:
- media does not have control over content of contextual ads and is forced to stick to what they know best
- advertising network is picking most of the ad display/click price and media publisher is not ready to share
- media does not know how to handle anything except banners which perfectly fits into advertising department
Neither way, we live in the place where media publishing companies without real strategy, do not work on proper delivery of online ads.
At the end, we all suffer. Without bigger turnover, and proper setup of ad blocks and content which will be read or watched online, we can not expect to prosper and make serious buck. What we can expect is that ad networks will abandon the markets.
Update: after several years ad networks did not flew away. These companies started sharing their inventories in order to fulfill demand from the visitors side. It seems that ad networks are here to stay.