1. #1
    Join Date Nov 2006
    Location Long Island, NY, USA
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    Default A perfect storm -- if your site depends on ad revenue you may be doomed, and not in a good way

    The Trichordist wrote a piece that credibly articulated an apocalypse for many, if not most, websites that rely on ad generated revenue. Which is most of them.

    The number of number of SAAS (software as a service) sites is increasing exponentially, due to the lack of alternative monitization schemes. If a site is not selling physical merchandise it has exactly 2 ways to generate revenue; subscriptions, which is statistically an extremely tough sell, so almost none of them do it, and ad revenue.

    What Silicon Sally is too busy blowing Bubbles to comprehend is that multiplying the number of sites depending on ad revenue doesn't multiply the ad budget and the lack of ROI from the ads is starting to piss off the advertisers. I wondered how long it would take for them to determine that the emperor is actually naked

    “Last December, the Association of National Advertisers and security firm WhiteOps estimated that up to a quarter of video ad views were fraudulent and resulting from software bots. It also said that as much as half of publisher traffic is from bots. This represents a projected $6 billion-plus in wasted ad spend this year.”
    -86%+ of our time accessing the web is now done through apps-Ad networks and other ad-based companies are going to get squeezed out of existence because of this, causing a collapse of an entire segment of tech which means thousands of high paying jobs are gonna go bye-bye and never come back. This is already starting to happen.

    Ad blocking is starting to take off in popularity and in court cases the judges in two instances sided with the ad blocking company stating that the user gets to decide what they want to do with their devices.
    -Ad blocking users have grown to an army of nearly 200M people. That’s a word of mouth marketplace that any company would kill to have, except they are evangelizing the death of your business. Think about it as 200M people who have decided what you provide is interesting enough, just not interesting enough to pay for it via your #1 monetization plan. What’s your backup plan for monetization?
    I had not realized that there is ad blocking software now that works with (or rather, against) yootoob and Spotify that is effective and legal. This is like, what, pirating the pirates? Stop and consider the implications.

    My own tests with ad blocking has removed every ad from YouTube, one of the primary revenue sources for music labels and artists. Consider that most videos using music on YouTube (likely 60-70%) never generate any ad revenue at all, not to mention that YouTube is still not profitable (really?), this is one basket of eggs I’d be thinking of taking some eggs out of…

    Ad blocking is getting more and more sophisticated with ad block plug ins for Safari, Android, Chrome, and even Spotify. Not only can you block Spotify ads (the freemium model they defend to the death – no freemium no paid), but you can rip tracks from Spotify with all the metadata intact


    http://thetrichordist.com/2015/08/13...evenue-crisis/
    Man! You have GOT to try a hit of this RANGE SUNSHINE!

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  2. #2
    Join Date Nov 2006
    Location Songwriter Gulch
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    Default Re: A perfect storm -- if your site depends on ad revenue you may be doomed, and not in a good way

    Something the Silly-ConMan Valley stock hustlers don't want investors to realize is that advertisers get immediate feedback about the effectiveness of their advertising expenditures. It's a house of cards like all Ponzi schemes.
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