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4) Advertis<strong>in</strong>g Subsidy grow<strong>in</strong>g dramatically<br />

Any new medium of communication, commerce, education or enterta<strong>in</strong>ment needs<br />

to be funded by advertis<strong>in</strong>g. This is one rule of the past that still holds true <strong>in</strong> this<br />

current paradigm shift. Advertis<strong>in</strong>g dollars are the SEED fund<strong>in</strong>g or start-up<br />

fund<strong>in</strong>g of all new media delivery systems. The Web is no exception. Advertisers<br />

are start<strong>in</strong>g to allocate money <strong>in</strong>to advertis<strong>in</strong>g on the Web as the use of the Web<br />

<strong>in</strong>creases, and as they see the potential for one-on-one market<strong>in</strong>g as a lucrative<br />

alternative to the mass-market advertis<strong>in</strong>g of TV and Radio.<br />

The Market<br />

Products from companies like Net Gravity, Focal<strong>in</strong>k, Web.direct and DoubleClick<br />

make management of advertis<strong>in</strong>g <strong>in</strong> this new medium much more powerful and<br />

fully automated. The <strong>in</strong>frastructure participants of the last media revolution are<br />

also jump<strong>in</strong>g <strong>in</strong>to the Web, br<strong>in</strong>g<strong>in</strong>g with them their needed products and services.<br />

As metrics for evaluat<strong>in</strong>g revenue models and ROI (return on <strong>in</strong>vestment) emerge,<br />

companies like A. C. Nielsen are adapt<strong>in</strong>g their systems for rat<strong>in</strong>g media reach and<br />

value, so that advertisers can select the optimal places to advertise and<br />

programmers can charge equitable rates for advertis<strong>in</strong>g exposure.<br />

All this leads to advertisers pour<strong>in</strong>g large amounts of money <strong>in</strong>to the Web to send<br />

their messages to their target audiences. Many of these audiences might no longer<br />

be reachable us<strong>in</strong>g the old media, especially among the young. Over the next 18<br />

months advertis<strong>in</strong>g will <strong>in</strong>crease its role <strong>in</strong> f<strong>in</strong>anc<strong>in</strong>g the Web media.<br />

______________________________________________________________________________<br />

The Aria Architecture Page 6 Andromedia, Inc.<br />

White Paper July 1996

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