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Ad Only Model: Problematic

October 25, 2010 16:58:29.183

Looks like Digg is the latest victim of an over-reliance on ads as a revenue source. The problem is simple: in the print era, ad space was limited, which pushed prices up. Same thing with over the air broadcasts - time was limited. Now? There are a nearly infinite number of web properties on which you can advertise, and most of us (at least in North America) have access to so many TV channels that it's a very easy matter to avoid any ad you don't want to see.

Scarcity disappeared, and - as should have surprised no one - rates plummeted.

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posted by James Robertson

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