[akula]

The guys over at http://www.firstbannermuseum.com have inspired me to offer a perspective on what the next billion dollar Internet startup's gonna be. There'll be a few, and this is gonna be one of them. It's gonna be an internet marketing company which is gonna create a new category for advertising products.

Existing Advertising Products.

Traditional Advertising (CPM): These are the standard products you get when you buy advertising on TV, in magazines, radio, etc. The metric used for buying the advertising is the CPM. This includes things like the milliondollarhomepage, paying someone to tattoo your logo on their forehead, or buying a Superbowl commercial. You are paying dollars for a hypothetical number of times that someone's gonna see your ad.

This category of advertising, is by far the most dominant at the moment. Advertisers are basically OK with cutting a cheque and hoping that some people who see the ad will actually make the phone call, visit the site, or buy the widget.

Performance Marketing (CPA): This is your standard affiliate marketing, paid search and pay per call. Very new, very cool, and it works. The advertiser only pays per action, whether it's a click, a call, a download, or a purchase.

There's still a lot of innovation to be done in this category, and a few billion dollar startups are still to emerge here.

New Category:

Pay for Trust. Whilst performance marketing and contextual/behavioral advertising is solving the problem of efficiently distributing the right message to the right person at the right time, what it's not doing is affecting the quality of the message. The internet company which figures out how to efficiently multiply the quality of marketing messages is going to be the kind of next billion dollar start up that I am talking about. And, of course, something is only of quality, when other people think it's of quality.

For the next generation of entrepreneurs, having to create these these startups is a foregone conclusion because they are going to be locked out of starting ventures which compete on basis of CPM or CPC. In other words, you have to come up with advertising products offer a completely different metric; this measure is gonna have to be trust, because the unresolved problem in advertising, isn't getting the right message to the right prospect a the right time: it's getting them to believe this message.

So the challenge is:

If you are creating a marketing company, try to create a value proposition that doesn't turn on the lowest CPC or CPM - find the formula for PFT (pay for trust).

[CP Mr Ofevaw]

I am betting on the "here web" as being the next big platform... I finally found programmers for my vision of merging physical retail, e-commerce, and "real world tagging", all using a mobile platform. It would work with CPA on purchases, and CPC for physical retailers - So, I might be biased.

The way I see it, if you can help companies expand their markets and increase profit (i.e. the same as marketing), then you have yourself a potentially billion dollar idea.

[nytronix]

I think that with each new day marketing becomes wider and wider.
i do not believe that in future would exist only one advertisement method.
I think that everything would be combined.

for instance if i am producing for instance car tuning parts. what i need? tv advertisements? not only! i need everything combined! i need advertisements on tv during automotive program, maybe on radio station cause many car fans listen to radio when they have a ride. i should have a website on internet and should promote it cause almost every car tuner use internet. i need a kind of affiliate system - for instance selling in bulk to car services and tuning centers. A lot of tuned cars owned put decals (tuning parts producers logo) to sides, hoods and windows of their cars. and so on. isn't it? using combined methods is a key to success!

i think that a client how choose combined methods for ads companies but ads space sellers should think about new fresh ideas how to catch clients' attention to them. maybe key thing is not "how can i sell ads space to client" but "how my method can be usefull for my potential client".

good example - 1m$ homepage. guy made a 1m$. why? because he provided people what they expected - visitors and traffic from his page. all others making a copycat did not catch an idea - that's why noone buys pixels at their websites.

and the most complicated thing for ads seller is to make client believe that he will get what he wants and what he is promissed

p.s.: i gave an example of tuning company cause now my company is planning advertisement campaign for one such tuning company and already analized what methods to use. yes example is a little aside from online businesses but still...


what u think?

[Outta Hand]

Originally Posted by CP Mr Ofevaw

I am betting on the "here web" as being the next big platform... I finally found programmers for my vision of merging physical retail, e-commerce, and "real world tagging", all using a mobile platform. It would work with CPA on purchases, and CPC for physical retailers - So, I might be biased.

The way I see it, if you can help companies expand their markets and increase profit (i.e. the same as marketing), then you have yourself a potentially billion dollar idea.

Sounds like a good idea... i see m-commerce moving to the forefront in the next 10 years myself. This will naturally be a call for union of delivery methods between physical, wired and wireless transactions but it something i see happening and i am looking forward to working on this more and more in the coming years.

Your idea is a little different but i like it from what i know about it thus far.

[Day2]

Performance marketing is a weird business. I can see how it'd appeal to advertisers.

The problem I see with it is that you (as the broker) can't control the performance. Say you're SitePoint.com (great web developer resource) and you're selling performance advertising. A client approaches you and says, "I'd like to advertise my widget-sales biz on your site and I'll pay $100 per converted sale I make from the ads." Sounds like a good deal, so you take take the offer. You get the ad from the client and realize that the ad is hideous. While the design isn't terrible, you don't feel that the ad will be effective. You check out the widget sales site and realize the site is a little buggy. The widgets are overpriced. You send an email to their sales department and never get a reply.

So, because of a series of factors that you have NO control over, you don't get much revenue from your advertiser. And realistically, you don't have the time to investigate the efficiency of your advertisers sales process, the value of their product, the demand for their product, etc.

As a publisher of content (TV, Web, whatever) the only thing you can control is the number of eyeballs that see the ad. If publishers get into the business of ad development, they can additionally control the persuasiveness of the ad. But, they are never going to get in the business of closing the deal, fulfilling the sale, etc.

So, I'll be contrary. I predict the non-growth of performance advertising (and I further predict that PPC will bite Google in the ass. <grin>

[nado]

I may as well add my opinion of the online advertising industry and the industry in general....

I think in 10 years time banner advertising and all of the standard forms used today will have very minimal effectiveness in actually attracting customers/visitors.

... by this time people will have seen all the same ads and will be almost completely de-sensitised to most forms of advertisement.

The future I think is in word of mouth and whatever related forms of advertising you can think of. People won't care if a computer automatically decides to place an ad in front of them if they happened to search for that product.

However they will listen to their friends, family, colleagues and anyone else in their life... and if one of these people recommend a particular business, product or brand, the person will then checkout the business themselves.

If you have been watching www.diggnation.com (which i think you should, since it's just plain damn hilarious), then you will have picked up a few episodes ago the next multi-billion dollar idea.... and it's something the digg founder Kevin Rose is doing right now with www.digg.com

They mentioned that google is taking the wrong approach to the whole search and search advertising thing. Rather than a computer deciding "these are the best sites and the most relevant ads for your search"... people would much rather see relevant results and relevant ads based on what their peers like/recommend/frequent.

And this is something digg is sort of doing now... they are slowly building up profiles on what sort of tech news certain people are into. In 5 years time or so they can quite easily take that data, match users to other users with similar interests and then "share the knowledge" so to speak.

See what I'm saying?

People want other people with similar interests to tell them which site is best and which business/brand/product is best... not a computer.

In this way, I think Daniels idea of PFT (pay for trust) will involve some kind of system where businesses pay to be in the loop that is the word of mouth marketing.


cheers
nathan

[nytronix]

Originally Posted by nado

I think in 10 years time banner advertising and all of the standard forms used today will have very minimal effectiveness in actually attracting customers/visitors.

perhaps in such form as it is now of caurse. i suppose that all these standart forms would be modified and impoved. as they are i suppose they would exist i nearest future but then people would start to search for more effective methods - so due to this fact banner advertising would be modified.
BTW it already started pixels they also are banner advertisements, aren't they?

[Drew]

Hey Nado,
Which Diggnation episode are you referring to? I can't find it in the description.

[nado]

Originally Posted by Drew

Hey Nado,
Which Diggnation episode are you referring to? I can't find it in the description.

Not exactly certain.. it'll probably be one with Google in the description somewhere

Perhaps try one of these:

http://revision3.com/diggnation/2006-01-25/
http://revision3.com/diggnation/2006-01-12/

[nado]

This is a good article: http://money.cnn.com/2006/03/24/maga...izes/index.htm