Being in the online advertising market for over 10 years, it is evident that there are a big changes happening. Last month at the most recent ad:tech in New York all the talk was around the need for ‘new’ online advertising products. Video on the web took center stage. In fact, the biggest elephant in the room was the horrid nature of pre-roll video in today’s web video content market. Everyone was just shrugging their shoulders, “Yeah we know it (pre-roll video) is ineffective and produces a poor user experience, but there is nothing else available”. This was the general sentiment among top advertisers and online media vendors such as Ogilvy, GM/Planworks, Fox, P&G, YouTube, NBC, etc.

New Models Coming

The public secret today in online advertising is that PPC based advertising is saturated. Banners are sliding into the land of irrelevance. As more and more online advertising dollars flood into the online sector, new advertising media will capture most of the revenue. What will the new advertising media be? It will be in the form of “Vertical Media” and “Social Media”. We are already seeing a flourish of vertical ad networks developing. Social networks are where the most exciting and relevant digital advertising solutions are developing. Social networks have unique micro-targeting capability and amazing behavioral measurement capability. The big question is, “What is the ad unit?” It’s targeted Microcontent. The growth in microtargeting networks is outpacing the inventory of Microcontent. There isn’t enough inventory of Microcontent ads. This is causing huge dissatisfaction among microtargeted community users who are jammed with irrelevant video ads.

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