Thought provoking and interesting piece from Ethan Zuckerman on future funding for journalism. He points out that advertising has always been massively overpriced in print, and now that vendors can get good stats on how effective their ads are, they’re not willing to shell out quite so much anymore. He quotes an ex-ad exec called Joshua Jeffryes:
When I worked in Advertising the ineffectiveness of advertising was hardly a secret. But customers couldn’t measure the effectiveness of ads. So they paid and continue to pay ridiculous prices for them.
Online ads, on the other hand, are measurable. They work just as well, if not better, than print, television, etc., the difference is that for the first time ad customers know exactly how ineffective they are.
The first point being something I suppose we all knew intuitively but, like our intuitions about the irrationality of the banking system, didn’t allow into conscious awareness (the somebody knows what’s going on, surely, impulse). The second point being a thing journalists and publishers are going to have to worry about. Says Zuckerman: Continue reading →