Online Advertising Sinks into the Abyss!

Back in the ancient days of 1994 when Mark Andreesen and his band of hardy programmers were inventing a ground-breaking product/application/way of life called a browser, a dedicated group of entrepreneurs started publishing Netsurfer Digest a modern day "Hitchhikers Guide to the Galaxy" for the web. I subscribed to this wonderful newsletter and reference guide back in those heady days of yesteryear and have been a loyal subscriber and advocate since then. Sadly on this past Sunday I received notice that Netsurfer was moving to a paid subscription only model and would no longer be able to continue publishing their three primary newsletters by utilizing inserted ads as their sole source of revenue.

Netsurfer became the proverbial canary in the coalmine that succumbed to the hazardous winds blowing across the online advertising market. They simply couldn't build a sustainable business model via ad inserts, even by delivering a million impressions a month to an upscale, well educated, target rich demographic group. This denouement has broad implications to many who are dependent on advertising supported business models. If this wonderful award winning publication with excellent graphics, topical information delivered in snappy "let's get to the point" journalism can't make it then it's time to batten down the hatches - the rough ride is still underway for online advertising.

What's worse in my opinion is the founders of Netsurfer Communications said they were throwing in the towel and moving to a paid subscription model because they didn't want to be a part of the intrusive (my words paraphrasing a bit) online ad technology that has become so "annoying." You have to give them significant karma points for this brave stance, especially when you contrast it to the "greed is great" news that's been hitting us all via the Enron debacle - thank God for real entrepreneurs who are putting their ethics ahead of their revenue stream, there may be some hope in the business community after all.

So, what does this mean to the broader community? It means it's getting increasingly difficult to make a buck/euro selling advertising without selling your soul to the devil by deploying increasing invasive (does anyone really like pop ups?) technology that may irritate the hell out of your customers. Ad rates are plummeting, even the once mighty Yahoo is struggling to make revenue and their sales reps even return calls now, which is definitely au contraire to their I'm too busy to talk with customers .com glory days.

You couldn't read a Fast Company or a Business 2.0 the last two years without reading some slick article by another reporter breathlessly telling us how the Wall Street Journal (Dow Jones) was pioneering the concept of building a viable online content subscription revenue model. This is hogwash, if we all had the type of branded content, excellent editors and the sterling reputation of one of the top five newspapers published in the world then this model would work for thousands of unique content publishers. But, most do not even have the subscriber base and branded content of a Netsurfer Digest - stay tuned to see if this model works for the Netsurfer folks (I hope so); but don't hold your breath, I don't think they will be ordering their $1,500. Herman Miller chairs right and left like the folks at Webvan and Quokka Sports - VC bucks don't come around like they used to, but that's another article.

I don't have any silver bullets for those who are headed down the track of trying to sell advertising supported newsletters and/or shift to a subscription model. The obvious advice is this may work, but you better have other revenue sources that leverage your demographics. And, if you don't have mutually reinforcing revenue streams, then take a hard look at your business and modify accordingly. The greatest shift in online advertising is via opt-in e-mail marketing - we all want to receive information that is timely, informative and presented in a compelling manner. So, find a business model that lets you narrowcast products and services to a community of people who want to receive content (contact) from your company - good luck to all and by the way, signup for Netsurfer's paid subscription newsletter - I did, we all have to vote with our visa cards once in a while to keep the karmic balance on an even plane.

About The Author

Lee Traupel has 20 plus years of business development and marketing experience - he is the founder of Intelective Communications, Inc., http://www.intelective.com a results-driven marketing services company providing proprietary services to clients encompassing startups to public companies.

Lee@intelective.com

---

Getting noticed on the Internet - Digital Marketing for Small Business

The Internet has grown from a small network of academics... Read More

What Is Drop Shipping? The Perfect Solution

Drop shipping one of the greatest business innovations since products.... Read More

Resources For Staying Current of IT Advancements For Online Business Owners

The internet and associated technology changes at a relatively fast... Read More

My Dog Ate My Website

I am really fascinated by the world of on-line marketing.... Read More

Seven Golden Rules Of Internet Marketing

"Do unto others as you would have them do unto... Read More

Make Internet Marketing Work for You Via RSS

RSS marketing is a tool used by many on the... Read More

From Niche Marketing to Fragmentation

Think about something Bill Cosby said and ask yourself "how... Read More

Competitor Analysis - How Writing Rubbish Can Give You an Edge

The Gobbledygook Competitor Analysis TipWhen typing cap can tell you... Read More

Marketing - All About Focus

Marketing would appear to be the great buzz word of... Read More

Marketing Rapport - 3 Tips!

Establishing & maintaining rapport with your online audience is perhaps... Read More

8 Benefits Of Helping An Online Business Newbie

Do your remember when you first ventured out in the... Read More

My 7-Step Secret Formula For Cashing In On Content!

Copyright 2005 Kurma GroupContent, content, content - everybody's talking about... Read More

Holiday / Vacation Time But What About Your Online Business?

For many of us, it is time to start thinking... Read More

The Secret to Making More Money in Your Online Business: Lessons From Monopoly

Thousands and thousands of people are striving to make more... Read More

7.5 Ways To Get More Sales Through Your Web Site

Yes, apparently - websites are supposed to make money! Somebody... Read More

Can You Really Make Money While You Sleep?

If you've been utilizing the Internet for any length of... Read More

Secrets of Successful Advertising

Here I will explain precisely how to advertise effectively, including:1.... Read More

Google Sitemaps ? A New Free Google Tool

Google has released another valuable. The tool, "Sitemaps", allows you... Read More

Google AdWords and AdSense - A Dynamic Small Business Marketing Duo

Unless you have been living under a rock for the... Read More

Persist Or Perish, The Choice Is Yours: Learn The Rules Of Online Business

Everybody wants quick profits. The phenomenon is more prevalent on... Read More

Website Sales: Using Direct Response Secret To Get Your Prospects To Buy - Now

I'd like to let you in on a little secret... Read More

What Can Make You A Fantastic Internet Marketeer?

You've probably know many answers to this question: a good... Read More

The Seven Secrets of a High-Sales Marketer

If you want to boost your website sales to the... Read More

The Undeniable Value Of Differentiation

With all the people offering products and services online, what... Read More

5 Secrets to Building a Successful Internet Business

Everyday I talk with people who want to get started... Read More

Hide and Seek

What's happening to the personal touch on the World Wide... Read More

Anatomy of an Online Marketing Failure

Wife: "I'm getting sick of these harrassing bill collectors who... Read More

Internet Marketing

Is internet marketing something for you? Do you dream about... Read More

Using Autoresponders In Your Online Business

Autoresponders return previously stored messages or sets of messages in... Read More

Headlines Bring Sales--Where and How to Use Them - Part 2

Headlines are short vital statements to stimulate your potential customers... Read More

Be Different And Profit

I've just spent 3 hours surfing the web and found... Read More

Killer Internet Marketing Errors - How to Avoid Them

With 95% of all Internet businesses failing, it is important... Read More

How to Make Money Online...Driving your Car.

Here's an alluring income generating strategy, that's widely adopted by... Read More