Monday, November 12, 2007

What the Advertising Model of Website Profitability Means for Advertising

As the internet becomes the dominant form of media due to it’s flexibility, interactivity and increasing speed, the sky is the limit for websites to obtain ad revenues. And the more money is spent on ads, the better agencies will do. It seems that the subscription model for websites is fading. Piracy is too easy, and people aren’t willing to pay for what they think should be free; after all, they do pay for access to the internet from their ISP. If we can assume no revenues from users for most sites, does that mean that advertising will have to financially support the entire internet? And with the growth of the internet, that will be a staggering number. Will businesses be willing to spend that much on a medium with typically low response rates? I would think so, because other media expenditures will decrease.