Tuesday, November 13, 2007

Ad model beats out subscription model for online content

Next to Dallas GM Doug Armstrong getting fired, the most interesting news today was that WSJ.com (Wall Street Journal online) is likely going to stop charging for content, and go to an advertising-supported model. This is interesting because WSJ.com was actually making good money selling subscriptions to their website (their content sells for sure), but they thought they could make MORE money in the long run selling ads. This goes to demonstrate how strong the market is for online advertising. And it jives with some forthcoming news at Hockey's Future, to give a little teaser.

SiliconValley.com discusses the WSJ news:
Murdoch’s thinking is no doubt influenced by stats like those that came out of the Interactive Advertising Bureau yesterday. The IAB reported that online ad revenue surpassed $5.2 billion in Q3, a 3 percent gain over Q2, and an increase of 25.3 percent over the same quarter last year. Citing the growth in broadband video, rich Internet applications, mobile ads and social media, the IAB said online ad revenue was on track to top $20 billion by the end of the year. Before anyone gets too excited, though, Marshall Kirkpatrick reminds us that a large part of that growth is tied to one company: Google.

Anyway, it's a good time to be online.

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