Gold in virtual hills
Yahoo CEO Terry Semel says that the potential for advertising on the Internet has been underestimated. According to Semel, previous industry estimates do not take into account video, social media or mobile devices.
Most projections show $16 billion being spent next year in Internet advertising.
I actually think that it's much higher because of the potential for advertising using product placement in video games and virtual worlds like Second Life as well as commericals as quid pro quo for collaborative websites. Since it's become pretty clear that startup companies cannot charge customers for social networking business models, the way to go is through advertising and most consumers appear willing to put up with it.
As some of the dubious profiling technology developed for Homeland Security is repurposed to provide laser-like targeted ads, consumers will eventually come to like a certain kind of respectful, opt-in, customized ad which can be delivered so much easier on the 'Net than elsewhere.
The actual number for ad revenue by the end of the decade could be many times projections.
Posted on November 14, 2006
