Decoupling Digital Advertising

Frederic Filloux of the Washington Post published an article today titled “Why is digital advertising so lousy? Industry is too smug to innovate“. He goes on to say “First, I’m in the same boat as many of my friends in the news media: A significant part of my income, past and future, rides on advertising. Therefore, my pragmatic self-interest is to see digital advertising thrive.”

There are two competing forces that hinder the lack of innovation in digital advertising. The notion that all content wants to be free and the notion that the only way to monetize content is with ad impressions and clicks. These are two major problems that continue to be fueled by the leading advertising agency in the digital space. As long as everyone continues to play along and support this 800 pound gorilla there won’t be any innovation in this space any time soon.

This notion that content should be free could change if users are able to profit on the web. The only way to achieve that is to change the flow of advertising dollars into the hands of consumers. Advertising is still the best way to effectively monetize digital media and web services, just not through clicks and impressions.

Another article making news this weekend titled “The Government Wants To Save Newspapers And Media Moguls” by Jeff Jarvis touches on some of the very same issues that are affecting digital media. People need to start realizing that there is a steep price to pay for consuming free content and digital media. The current economics of digital media is more concerned about quantity rather then quality. This drive for pay views and ad impressions is fueling and shaping our digital landscape, and unfortunately only a few are benefiting from this model.
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