Revenue From Online Media and Advertisements

Revenue from online sources is a really interesting discussion.

First let me say that I think it is a long held assumption by newspapers and magazines that people actually look at and read their advertisements.

Contrast that assumption with the fact that advertisers do not want to pay for online advertisements unless there is clear evidence that the online reader has actually looked at or interacted with their advertisement.

To me this is interesting because in the past there has never really been a way to measure if print advertising, things like the flyers that arrive in your newspaper or by mail, are read or even make it past the recycle bin.

I know people who actually have the recycle bin right beside the spot where the mail arrives. As they pick up their newspaper, they take the flyers, advertisements that arrive in the mail and the “junk mail” and toss it directly into the recycle bin without a second look.

All that the advertisers want to know is the circulation, or in other words, how many addresses their flyers or advertisements are being delivered to. You may have seen inside of newspapers where it says something like “100,000 audited deliveries” or something to that effect. What this confirms for the advertisers is how many homes that their advertisements are being delivered to. Essentially, how many eyes will see their promotional material.

However, even if a website or blog has hundreds of thousands of hits per day, week or month, advertisers do not consider that to be worthy of their advertising dollars. They want evidence that the person seeing the ads has actually spent time reading their ads.

I suppose my point is that when advertisers pay to have their ads in newspapers or magazines they have no way to know or measure if people look at their advertisements. Advertisers will pay the rate that the newspapers or print media demand.

Now that there is a way to measure if people are looking at or interacting with online advertisements, the pay structure for advertising is changing.

That’s it. Just me musing about advertising in the new online world of media.

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