Platform/Agency/Publisher Lines Smear Ad Revenue Whiteboard
"Advertisers are expected to spend $21.4 billion online this year," says eMarketer (via B2B). That’s a 25.1% increase over 2006. But wait, it gets better. They projected spending to continue increasing over the next few years, hitting $42 billion by 2011.
Now, I may have been taught advanced math by an Eastern European T.A. with limited communication skills, but let me tell you, that’s APPROXIMATELY DOUBLE our current figure.
An English major might make the mistake of saying, "nearly" or the more colorful, "just shy of." I’ll stick with approximately, for now.
Now let’s pose a question: How much of that money is going to go to Facebook?
The keynote at ad:tech NY this week addressed this very issue. "Is the trend towards platforms important or is it just a fad? What will
the relationship be between platforms, agencies and publishers?" The conclusion, according to Lee Odden, was that there is no doubt that platforms can help agencies, through data mining. And they’re obviously good for users, because they help build communities and encourage widespread interaction. And publishers, said Arianna Huffington, can learn to become more like platforms by offering users these same tools.
Then what do the platforms get out of it? Well, collect revenue from "social advertising" on their valuable inventory, apparently, and try to shame everyone else by pointing out the flaws in their own models. Old-fashioned, I bet we’ll be called. Sticks and stones.
Be careful, Facebook. Let brands build their pages, but please don’t trick users into unknowingly becoming Brand Advocates and sending out ads to all of their closest family and friends. There are enough of them out there already, searching for the ultimate product, and passing on the good news.
But I’m so glad that Mark is so eager to share his social graph with us. Something tells me that he and my T.A. would get along just fine.


