Thursday, December 23, 2010
The internet is worth less
Earlier this year it was reported that people spend as much time on the internet, 13 hours per week, as they do watching TV. And according to Ad Age, the internet has surpassed newspapers in ad revenue.
Yet, while everyone is rushing to get their message online, there's still no clear definition of what a successful campaign looks like.
It's not eyeballs. The New York Times website is one of the most visited online, yet it's never been profitable.
It's not engagement. Millions of people have interacted with Burger King's Subservient Chicken over the years, yet they're still a distant number two to McDonald's.
Even with all it's great promise of behavioral tracking and measurability the internet is still unproven as a sales and revenue driver for advertisers. Want proof? People question the value of advertising with the smash hit Groupon, while Google is willing to offer billions to buy the service.
Yes, it will all settle down and people will find out what the internet is really worth. But right now it's only worth what advertisers are willing to pay. And according to them, it's worth less.