The Internet will continue to drive major structural change into the advertising and other digitizable media for the next 25-35 years. (The Carlota Perez book previously mentioned explains paradigmatic technology diffusion; Ray Kurzweil, referenced below, builds on the same concept to posit that technology/human change has accelerated since time began and will continue to do so, resulting within 30 years in implanted brain chips that leverage our thinking capabilities the way our foot on the gas petal leverages our muscular capabilities). Anyway, back to the present. Broadband connectivity (medium band, really – until we get more competition in telecoms, the 100MB/sec links available throughout Seoul, Korea and other foreign cities will be a figment of our imagination here) just recently hit critical mass in the US. Broadband mobile phones (again, medium band vs other nations) will reach critical mass in the next three years. That $200/household for Internet ad spend represents only that revenue that has been derived from the move of print ads to the web; audio/video related advertising is at its inception (and is why Google paid $1 billion for the largest market/mind share position in that market. Audio search is well developed and will begin to be monetized via ads soon. Video search has further to go, but I have no doubt that Moore’s Law will bring the processing power required to do it to an economically viable level. The number of doublings in processing power/unit ($) of resources consumed just recently passed thirty. Given the exponential nature of this growth, however, the absolute gain from each doubling has now reached the point of delivering stupendous economic impacts (same applies to storage, where you can now easily buy Terabyte storage servers for less than $1000). (more…)
Archive for the ‘Digital Media’ Category
Publishing and Advertising 2.0 – Part 2
Friday, February 16th, 2007Publishing & Advertising 2.0 – Part 1
Thursday, February 15th, 2007Publishing and advertising are undergoing structural transition last seen when Gutenberg’s press was invented. The Internet, and more specifically, the broadband Internet (which has reached critical mass during the last six years), eliminates the cost of distribution as an economic factor in media publishing and advertising. The fact that some businesses, including most of the historical advertising and publishing concerns, have not adjusted their business models has absolutely nothing to do with Bush or politics. For extended treatments of this subject, see Carlota Perez: Technological Revolutions and Financial Capital and Clayton Christensen: The Innovators Dilemna. For more concise observations in point of the facts of structural change in advertising business, I refer you to these: (more…)
Blogging 2.0
Thursday, February 10th, 2005I believe Fred Wilson nails it in this post..
That was Blogging 1.0. We knew back then that the web was a great platform for personal expression. All three businesses still exist. Two of them exist inside of web portals and About.com apparently is going to get sold soon, apparently to the New York Times Company.
Blogging 1.0 paved the way for Blogging 2.0. I see four fundamental improvements that differentiate Blogging 1.0 from Blogging 2.0.
The first is the notion of the post as the central piece of content. About.com had some of this in its DNA, but Geocities and Tripod did not. Posts drive freshness, frequency, and syndication and make Blogging 2.0 much more exciting than Bloggin 1.0 was.
The second is related to the first. Permalinks have changed the game fundamentally. Linking to content was not really possible until permalinks came along. Now each piece of content is a persistent object that has a unique identifier. This is a huge deal and this concept did not exist in Blogging 1.0.
The third is RSS. Blogging 1.0 was a web experience. Blogging 2.0 is a everywhere experience. Content was a solid in Blogging 1.0 and its a fluid in Blogging 2.0.
The fourth is CPC and contextual ad networks. In Blogging 1.0, the only way to monetize the business was with banners. And brand advertisers were not thrilled with paying high CPMs to advertise on "amateur content". With the arrival of CPC and contextual ad networks, this is no longer the case. Wherever advertisers can get clicks, they’ll place their ads. The result is a huge increase in the potential revenues.
Business Related, for a Change!
Tuesday, November 9th, 2004Time to blog about something else besides politics. EuroTelcoblog opines that Internet and web publishing technologies are evolving in a manner that suggests a new Web-based investment research platform will surface to replace the obviously dysfunctional and outdated one provided by the investment banks.
"the message is pretty clear to me: eventually, and probably sooner than later, someone is going to pull together all these diverse angles on telecom/internet/media/hardware/applications/chips, incorporate some hard financial and technical analysis, and build a cross-sector investment research platform incorporating realtime tools (I mean blogging, IM, video conferencing and collaboration) rather than .pdfs and spam.
There is a business model here, and whether it’s the financial media who seize upon it (Reuters and Bloomberg have the infrastructure and a lot of data, but are trapped in a walled garden mentality and put their journalists in the same sector-coverage silos that the brokers do), or the brokers (I’m skeptical, because I think they tend to be dismissive of alternative points of view, risk-averse, organized in sector and region silos, and anyway are focused on trying to kill one another), or a newcomer (CNET or something that doesn’t currently exist), I feel certain that it is going to happen."
Makes sense to me. Furthermore, if true, it would seem to follow that almost any research-intensive business would be open to similar disruption. Wonder if Gardener, Forrester, Yankee, et al. have thought of that?
MP3 Filesharing Disrupts Music Industry Business Model
Saturday, April 3rd, 2004But, not because music consumers are "stealing" music. Instead, the Internet and peer-to-peer filesharing disruptively enable musicians to become real business entrepreneurs by creating and maintaining their own distribution channel to their loyal, dedicated and" fanatical" customer base. Tim Oren explains why this is so.