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Friday, April 29, 2005

Some more advice on Internet advertising

Updating a recent posting, some new developments in online advertising have emerged. Found on Wired News, the most promising, which, for its efficiency in targeting, will probably become the industry standard as the medium evolves, is called behavioral marketing. Already tested by the well-known Internet retailer Amazon, behavioral marketing uses the capabilities of the Internet to track an individual's Internet searches, consequently posting ads related to these searches. If newspaper websites are able to implement this ad strategy, it will more than likely be highly profitable as advertisers will be sure not only that the consumer will see their ad, but that the ad will peak their interest. Personalized ads will theoretically be welcomed by the consumer instead of being seen as a nuisance.

Then there's Google. Poynter references Robert McLaw's Longhorn Blogs which includes advertsing in RSS feeds, a feasibly profitable venture that Internet barons have been trying to work out for some time. Google has jumped on the opportunity, testing its AdSense ads in RSS feeds. If the tests are a success, RSS ads will be an extra source of income for bloggers and newspapers, and of course, Google.

As for the classified market that has been feared to be lost to the Internet, Poynter also notes that the time a classified stays on Craigslist, 30 to 45 days, is a positive thing. Some pessimistically see this as an annoyance because occasionally the classified browser will click on a product that has already been sold. But Poynter notes that this is also a positive feature because sometimes products aren't bought immediately; the longer it's posted, the longer people will see it. Anyway, it's easy to delete a classified from a Craiglist page once the product has been sold. And, let's not forget that the service is free.

Sources: Wired News, Poynter (Google, Classifieds)

Posted by john burke on April 29, 2005 at 11:26 AM in c. Multimedia convergence, h. Young readers / New readers, n. Online strategies, q. Regional and ethnic newspapers, r. Revenues and business models | Permalink


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This is their fourth revamp in 5 years... Clearly all is not well...

They are also going in for an IPO. IPO filing details the fact that they were loss mking last year and barely scraped through in the last 9 months

Posted by: Chirag at Apr 29, 2005 2:03:46 PM