The people who standardized the (cost-per-click) or (cost-per-view) models of Internet advertising have basically ensured that bloggers and webmasters running sites have to rip themselves off beyond all belief. Unless your site is getting millions of hits/visitors — and all from people who are willing to actually click on your ads — good luck with that retirement savings…or even purchasing health care.
It’s a dumb model, and one that should be replaced with a model similar to that used by mainstream media. In other words, you want your ad on our site? Forget futzing around with “cost per click”. Like a newspaper insists, you should pay x amount of dollars for your ad to run on the site for x amount of days, based on traffic/visitor averages from reliable web stats. Period.
A newspaper doesn’t say, “Oh, well…we have a daily circulation of 300,000, but only 40,000 people chose to actually read the page with your ad on it today, so we’ll have to rip ourselves off and discount the space.” Screw that.
This is why, despite the MSM having declining numbers, they’re still actually making money. And bloggers/websites aren’t. At least not with ads like this.
And if you think that the Internet, websites, and blogs — with all their political content, and often beating the mainstream media to the presses on breaking election news — are having those eyeballs rewarded/translated into $$’s, then you’re kidding yourself. The Web is getting a penny of revenue for every political dollar spent. According to this MediaPost article:
“With political advertising expected to hit nearly $5 billion this election year, online spending will collect just $20 million–with half that amount funneled into paid search, according to a new study.
The report, released Wednesday by Borrell & Associates, predicts that broadcast television will maintain its dominant role in selling candidates–capturing $2.9 billion, or 60%, of all political ad spending in 2008. The rest will go to newspapers (17%), radio (10%) and cable TV (5%).
Why is the Web getting less than a penny per political ad dollar in what was supposed to be the “YouTube” election? One key reason is that older, affluent voters remain the core of candidates’ political support, according to the Borrell report. The best way to reach the over-55 crowd is still TV, since most of that group spends less than an hour per week online.”
I’d like to use this post as a starting point to brainstorm for better online advertising revenue models/ideas. So go ahead, post your ideas in the comment section. I’m sure we can come up with some better alternatives.