May 06, 2003
Om Mani Padme Low-Overhead Classifieds with High Accountability
Internet Guru--no, Internet Boddhisatva--Doc Searls meditates on the meaning of the facts that Overture and Google are profitable:
| ||See what happens when you disintermediate everything? : If you want to see the future of advertising, and of the stuff it supports, consider the growing fortunes of Overture and Google.|
| ||Overture's preliminary revenue report for the last quarter verges on a $1 annual billion run rate. That's for advertising, folks. Remember how that business model was supposed to suck? Welcome to one walking disproof of that. The company has also been running at gross profit margins way upwards of 90%. Google is in the same business, although they aren't public like Overture, so we don't know what their revenues are. We can be sure they aren't small.|
| ||Like I said here, the new advertising game is low-overhead classifieds with high accountability. The holy grail: Ads that work by making themselves useful. Period. We're almost there.|
| ||Disintermediated are agencies and other go-betweens that served as massive reduction gears in an industrial machine that never worked that well in any case (if you just consider the waste).|
| ||Gaze into the crystal ball, and wave goodbye to Business as Usual.|
| ||Bye-bye to ad agencies. Bye-bye to creative, media and account folks. Bye-bye to operational frictions and value-subtracting costs and annoyances of all kinds. Give it time, and you'll be saying bye-bye to traditional media too.|
| ||Then say Hello to simple messages in vehicles that work for everybody and don't annoy anybody in the process.|
But what's with the use of all those tables in the formatting? What's wrong with simple <blockquote> tags?
Posted by DeLong at May 6, 2003 02:41 PM
You would have thought that New Media people would have got the message by now that "advertising isn't about clickthroughs" but apparently not. How are you going to run a global brand like Nike through "high accountability classified ads"? Is Dior going to switch its perfume advertising to Google keywords? One day these new media gurus are going to actually speak to someone in advertising and hear the phrase "above the line/below the line" and it is going to totally blow their minds.
Furthermore, I can't remember Searls ever having been right on any subject whatsoever, so I feel it may be premature to raise him to Bodhisattva status.
Never mind the bollocks, what about _The Social Life of Information_? Brown & Duguid did a pretty definitive job of ripping this kind of nonsense about "disintermediation" to shreds years ago, and nothing's changed to suddenly make it sensible.
Ob. Link: http://www.slofi.com/
Well, when I want to find who sells something online, I just punch in a google search, and look at the right side of the screen, instead of the left.
I have and do buy things online this way.
I personally find them the most refreshing thing to happen in advertising, and in ecommerce.