A client sent me two articles to react to about online advertising.  The title that I chose for this posting states my position:  I'm not sure why people think that advertising alone should support a website.

The first article is from The Economist and is entitled The demise of a popular but unsustainable business model for the Internet now seems inevitable.  This is one of the best articles I've read that explains the reality of Internet business models, whether realistic or not.  Read the entire article at www.economist.com/opinion/displaystory.cfm?story_id=13326158.

Great explanation of the dotcom crash…
Firms sprang up to offer content and services online, in the hope that they would eventually be able to “monetise” the resulting millions of “eyeballs” by selling advertising. Things did not work out that way, though, and the result was the dotcom crash.

…and of the Web 2.0 bubble…
Google’s ability to place small, targeted text advertisements next to Internet-search results, and on other websites, meant that many of the business models thought to have been killed by the dotcom bust now rose from the grave.

….and economical realities.
The idea that you can give things away online, and hope that advertising revenue will somehow materialize later on, undoubtedly appeals to users, who enjoy free services as a result.  Ultimately, though, every business needs revenues—and advertising is not going to provide enough.

The second article is a provocative one entitled Why Advertising Is Failing On The Internet and states that advertising cannot fully support the Internet.  Read it at www.techcrunch.com/2009/03/22/why-advertising-is-failing-on-the-internet/.

Websites need to sell real products, services, information or 'access' to information like TripAdvisor.com.  Or, offer an 'experience' like LinkedIn, Facebook, YouTube, or World of Warcraft.

It's true that most people don't trust ads, online or offline.  They don't 'want' them or 'need' them.  The Internet allows users to get information from a variety of sources and from sources they trust.

But, no company expecting to maintain market share in today's economic environment is going to say "Stop telling potential customers about us." 

Organic search, paid search and display banners can increase awareness and conversions even in today's climate.  Display banner advertising works because it reaches users where they are on the Internet.  You don't advertise just with your name on the building.  You advertise in high traffic areas, too.

How does Definition 6 ensure that online advertising succeeds for our clients?   First, we're big into collaborative strategy.  How can you differentiate yourself?  How can we build synergy with your other initiatives?  Who should you target with banners?  What should the messaging be?

Bottom line:  Appropriate targeting and messaging still works online.  We go beyond traditional banners; we use rich media to make the experience engaging and interactive.