I have never been a fan of the banner ad [understatement] nor understood why this niche advertising vehicle took off the way it did. Why did the online world settled for such an old model applied to such a potentially rich environment like the web. In a recent conversation with my buddy Scott Kraft we even argued that we can "thank" the IAB's banner ad standardization for the lack of innovation in online marketing over the past ten years. I wholeheartedly agree. Such an old media model applied to such a rich medium - makes NO sense.
Today - things ARE different - the social web is rich with opportunities for companies & customers to connect and exchange REAL VALUE.
In this week's WSJ editorial , entitled The "Coming Ad Revolution" Esther Dyson sums it up brilliantly:
"This does not mean that traditional online advertising will go away, just that it will become less effective. Value is being created in users' own walled gardens, which they will cultivate for themselves in real estate owned by the social networks. The new value creators are companies -- like Facebook and Dopplr -- that know how to build and support online communities."
I would argue that the real value creators will be companies and applications that actually cross and integrate walled gardens - free and open is where it's at. However, Esther's point is well made. The crux of it is - I am in control of my data and my network and I CHOOSE and GESTURE who I want to connect with when and where. Search was the first step in assisting the customer in finding what they want - but now information overload means that I am inundated with data. However, if I am in control and gesture to my community what I need when - value is created for both sides!
In this universe, I am no longer an anonymous surfer glommed together into a bucket of other searchers, I am an INDIVIDUAL gesturing a very specific need and desire - for a car, travel, real estate, a great pair of shows or an event - to the community [people and companies] who take the time to KNOW me.
It is indeed a relationship economy - and I am in control!
But we are not really in control at all at this point in time. In many cases, users are unable to even delete profiles or export data. Modern initiatives to the contrary, we are far from the era of social data being portable and free.
The walls remain, and shall remain, as long as the market is dominated by the top two or three commercial properties. The ad supported model only serves to reinforce the stranglehold.
Posted by: Alan Wilensky | February 15, 2008 at 03:34 PM
Alan - I totally agree. We are WAY early - but we have more control than we used to. The ad controlled model will become less effective and I hope and believe [along with many other forces and dare i say movements - dataportability, opensocial] will ultimately lead to a business need driving even more control in the future.
alas - babysteps
Posted by: deb schultz | February 15, 2008 at 03:49 PM