Tuesday, April 30, 2013

The Business Model Of TV Is To Deliver Viewers To Advertisers. The Business Model Of Online Is To Deliver Advertisers To Viewers.


If the above is true, it raises the obvious question.

Why would we ever think that the monetization models that work with TV would work online?

If the business models are different, then the way the business models create money would also be different.

But instead, we try to squeeze the TV monetization models into the online space.

And, we all know how well that’s working.

TV is about quantity. 

Online is about quantifiability.

TV is about reach.

Online is about search.

TV is where the advertiser initiates the interaction through interruption.

Online is where the user initiates the interaction through opting-in.

The reason that advertisers should get into the online space isn’t scale.  TV offers scale with little accountability.

The reason that advertisers should get into the online space is accountability.  Online offers accountability with little scale.

Advertisers are so busy trying to hang on to their old models that they are failing to take advantage of the opportunity that change creates.

Surprised?

No, I didn't think so.

No comments:

Post a Comment