How to grab Internet Advertising dollars?

How Do They Track You? Let Us Count the Ways - Bits - Technology - New York Times Blog

I did not know that the NyTimes.com was a top 100 website, well it’s technically not. But, it’s ranked #102 in the Alexa rankings, which shows it may or may not be? The article above is about internet advertising, and how marketing agencies and companies want to know about target marketing. In todays world of interactive this, and interactive that, who can blame the marketing companies to want to target their customers and know as much they possibly can.  I am amazed by the amount of data and market research collected by companies about website users. This is a good article to read about how large companies are doing it. But I want to know, how can small companies make money by grabbing Internet advertising dollars?

Marketing and Advertising are always intertwined, especially as advertising is the subset of marketing. We obviously write a lot here about organic search marketing, SEO, which a lot of people “wrongly” call free traffic. The counter part of that is Pay Per Click advertising, and display advertising, the other two aspects of Internet Marketing. Both of which have to be contextual to be effective, the days of banner ads are simply too passe’. The biggest innovation in Internet marketing is the self service nature of Google Ads, through Adwords, and it’s Adsense products. The main reason is that prior to both, it was incredibly difficult for small businesses to buy targeted advertising any where, let alone Internet advertising.  Did you know that Google ads get 50-70% of their traffic from their content publishers and search network, not Google.com?

Most people would not consider local newspapers, and yellow pages targeted advertising. I am sure local radio and television stations can be touted as interactive in their days, but how targeted were they except for their geography? Now with Google, Yahoo, MSN and other major ad networks, you can actually target locality, topics/categories, and contextual texts. I recently tested the ClickRiver system by Amazon for ads on Amazon.com, it was not up to par to the others.  AdBrite.com is another big network with over about 15 billion ad impressions a month on their system.  The seem to have squeezed in with a smart strategy of developing a large network of small and medium publisher sites which serve their ads.

I think if anyone is going to compete with Google for Internet marketing and advertising dollars, they have to develop a large network of publishers that host AdSense like ads.  They need to help small businesses and website/blog publishers make money and you will generate a huge following and make money to.   So the key is to develop an Adsense like program, but we are than back to the chicken and the egg thing.  So it really will take a large company like Microsoft, which can grab major and minor advertisers, and than show the scalability of its influence to grab the audience. I think the missing link in the Microsoft suitcase is the large publisher network.

What is the Google weakness that Microsoft can take advantage of, especially with AdSense. Google does not tell it’s publishers, who much money they are making, percentage of the deal. This maybe the single most important reason, most publishers would leave Google? Who doesnt’ want to earn more money off the same traffice, and this maybe the why smaller Ad networks such as Adbrite are doing so well.

How do most small publishers make money through Internet Advertising, besides AdSense? They make it since the Web 1.0 kick start, they do it through Affiliate marketing. Most websites and eCommerce companies have learned from the Amazon.com affiliate model, and now pay fees to affiliates for customer acquisition. And CJ (Commission Junction) is the largest affiliate system is utilized by a lot of large companies. So if you are an Internet Advertiser, use CJ.com to grow your network and ad inventory, and if you are a publisher, use CJ.com to make money.

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