Friday, January 07, 2011

Is It Commercials That Consumers Dislike? Or, Is It The Way That Commercials Are Distributed?

This is the crux of it, isn’t it? Or, at least, this is the crux of it as far as AdKeeper is concerned.

AdKeeper believes that people will keep commercials to view later. Interesting premise because it assumes that commercials offer something of value to consumers.

Which is, of course, true. In other words, commercials aren't the problem with advertising.

The problem with advertising is that it’s a five hundred pound hammer trying to drive home a one-inch nail. Overkill.

What AdKeeper has done is taken the hammer out of the hands of the advertiser and put it in the hands of the consumer.

Which means it’s the consumer that now determines how much they want to be pounded over the head with a message. A lot? A little? Not at all?

So, to answer the question in the headline, it's the distribution of advertising that's the problem, not so much the content of the ads themselves. (Of course, there are numerous exceptions to this, but you get the drift.)

AdKeeper understands that distributon is the problem. But where they may still face difficulties is in how they seem to be charging for their services. From what I can tell, they’re going to charge on a CPM or CPC basis.

This is heavy hammer thinking – a philosophy and monetization model based on scale. Aim at 30 million and you’re bound to hit a couple.

AdKeeper is more of an arrow than a shotgun approach. After all, the viewer determines relevance, not the advertiser.

As such, AdKeeper needs to find a way to redefine value so that it’s not based on scale.

Do they know how to do this?

Don’t know. But if they’re smart enough to get this far, my bet is that they're smart enough to figure it out.

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