Google Ads and Their Limitations
August 24, 2010
Publishers are not going to be happy with the tidbit tucked into “iFive: Goggles Coming to iPhone, Google Ads Can’t Fund Magazines, Cairn Energy, Smelling Robot, Russian Criminal Life.” Here’s the factoid from Fast Company:
A British business specializing in digital versions of magazines has revealed just how much money Google Ads can make for established magazines. “Nuppence ha’penny.” Hah!
What’s this mean? First, Google Ads require lots of traffic to generate a big payoff. The tinier the topic, the less likely Google Ads will generate huge bucks. Try Tiger Woods and now you are talking.
Second, subscriptions or outright grants, donations, or government support will be needed to make some online content viable. Most vulnerable? The traditional media.
Third, as challenging as Apple’s business methods are, the iPad and its kin may become the life preserver many information companies will try to grab. The problem is that the iPad does not solve fundamental problems of readership, demand, cost of content creation, and marketing.
My take is that publishers will try to jump into rich media, which is not these firms’ core competency. The result? More losses and more opportunities for those with a core competency in new media.
Stephen E Arnold, August 24, 2010
Freebie
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