Tootsie Roll Revenue.
Posted by todd Wed, 18 Oct 2006 06:06:00 GMT
Ok, I don't want to be Mr. Negativity here but if I hear one more startup company claim their revenues are going to come from advertising clicks.... Pow! Right in the kisser!
Yes, Google and Yahoo (less so) make piles of money with their advertising models. Yes, the Myspaces of the world generate real revenue from advertising. As Andy Kessler points out, they own a huge channel. The part that baffles me is why are so many companies being funded on the hope that they can just USE these pipes (often even without any recognizable traffic)!
If there is any question in your mind that the advertising model is out of control; take a step back and think about your web surfing habits. How often do you *really* click on an ad? Personally, I'd say I do it roughly once in a hundred SITE views (not page views). On top of that, I'd hazard a guess that I click more than most people because I live on the web and spend my time doing research. I click to find out who is competing in a space.
I guess we are left with a question.
How many clicks does it take to get to the revenue center of an advertising based shop? One... Two... WAY MORE THAN THREE. (Sorry, that was terrible) -T
