Note: This column represents the opinions
of the writer and as such, is not purported as fact
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During the Dot-Com Boom (tm) of the late 1990s, many websites were launched
on the premise that they would operate just like their print-media peers
and earn a fortune from advertising.
And, for a little while, this model did work -- thanks to the vast amount
of money that other websites (flush with venture capital) spent on promoting
themselves.
Of course when the bum fell out of the dot-com industry, the vast majority
of those VC-rich startups disappeared almost overnight -- along with their
advertising dollars.
As anyone producing an online publication will tell you, the years from
late 2000 to 2003 were very difficult ones. The Internet was no longer
seen as *the* place to be and even the effectiveness of online ads was
called into question.
A number of advertisers and websites responded to this by using more aggressive
tactics like pop-ups/unders, interstitials, much larger banners, etc. This
however, simply left an even nastier taste in the mouths of many websurfers
and further demoted web-based ads down the list of places to spend your
advertising dollars.
Others turned to spam, figuring that it was cheaper and (if you listen to
those who run the spam servers) more effective than web-based promotions.
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But now, if reports are to be believed, we're seeing a very significant
renaissance in web-based advertising.
Figures out of the USA show that some US$2.3 billion was spent buying online
ads in the first quarter of this year already -- a 39 percent increase over
the same period last year.
I think it would be a pretty safe guess that this demand for online advertising
has been driven by the growth in online retail sales. I recall just a few short
years ago when the launch of local e-retailer Flying Pig was big news. Now you
can buy just about anything you want from the convenience of your web-browser
and having an online checkout is becoming the norm rather than the exception
in the retail world.
All these retailers need to promote their online stores and there's no better
or more effective way to do it than through online advertising.
And suddenly it's the website's that carry these ads that are calling the tune
and those advertisers demanding those really annoying advertising formats like
pop-ups are being given the bum's-rush.
This has to be very good news for web-surfers. Although the result of this
surge in demand is almost certainly going to be that we end up seeing more
advertising, at least it will be the type we can more easily ignore.
One would also hope that at least the ads we're accosted with are better
targeted to the content being displayed. As I mentioned in a previous column,
we have Google's AdSense to thank for an increase in accurate targeting -- let's
hope that other advertising networks wake up to the importance of this.
Let's also hope that this abundance of advertising dollars will spawn
a surge in the number of really good online publications.
Prime's Poll Is Dead -- RIP
It looks as if Prime has given up on maintaining its daily news poll.
Maybe my article and the small spurt of traffic that it might have generated
have overwhelmed them.
Maybe they just figured it wasn't worth the hassle.
Too bad -- they were the only news broadcaster to make an attempt to interact
with their audience through the web.
This is a real shame. After my experience with 7am.com I *know* that there's
huge potential for synergy between broadcast and web presences -- and that
synergy goes far beyond just stuffing your top stories on a webpage.
Which NZ broadcaster will be the first to realise this?
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