Tuesday, March 06, 2007

Sell Side Advertising - New models for online advertising

John Battelle of Searchblog poses an interesting new model for online advertising, where site publishers could select the ads that they want to serve on their site, picking the most relevant ads, and ones that with a Cost Per Click payment would generate them the most money.

This kind of model is more relevant to bloggers, than big commercial sites. This is interesting territory that is ripe for development - major publishers and media have relationships with advertisers and enguage in a complex relationship. Bloggers will no doubt want more control over the ads that they serve and the power to negotiate and leverage their sites more effectively.

The model presented means a lot more work on behalf of the publisher, who actively has to select the ads, would have to monitor their performance etc etc. I am not sure just how much time most bloggers would have to do this. The payments would all need to be managed by a single ad supplier, as it would be too much to open a dialogue with too many advertisers.

I think that allowing publishers to select appropriate ads for their site, combined with software algorythmns will ultimately provide the advertiser with more relevant placement.

Read the article here...