Very interesting read over at ClickZ regarding online advertising and the growing demand for inventory:
Over the past few weeks and months, I’ve been seeing a lot of signs. Big media players on the hunt for online inventory have snatched up sites such as MarketWatch and About.com. Startups like Bloglines and Feedster, ostensibly conceived as ad-supported media companies, are attracting buyers or venture investments (or both) — before they’ve had a chance to prove themselves.
What’s it all about? Online inventory. As advertisers and big media players finally acknowledge the undeniable change in consumer content consumption, the rush is on to generate space to sell.
You’ll see posts everywhere that CPA is deader than dead and many affiliates have moved on. I don’t agree with that, I think affiliates can still make a nice dollar with commission based sales. Granted it’s taking more time and effort (instead of 50 pages you need 50,000 datafeed pages :lol:). And although I acknowledge that there still is money to be made, I do question if it’s where the smart money is.
But … I am recognizing that at least in some sectors, earning from ad revenue (such as adsense) is much stronger than earning from affiliate sales. We all know a few of the problems: cookie deletion, adware/parasites, dishonest merchants/networks, etc., but I don’t think it’s at a level ‘yet’ that CPA type affiliates will die off like the dinosaur. There’s still a lot of that low hanging fruit to be had. And there still is time to turn things around, to make the necessary changes so that CPA type affiliates *DO* see a more worthwhile incentive to continue working with this model of revenue generation.
That’s the key issue to affiliate networks and merchants, make it hard for your affiliates to pay less attention to you so they can pour more effort into earning from PPC or ad sales. Or be dumped for greener pastures.
What I see happening is a more ‘branching out’. Affiliates turning somewhat away from CPA, away from ‘selling’ and more to publishing content (making room for ad space).
Think I’m hallucinating? What’s all the talk been about the past year or two? Has it been how great Commission Junction is to work with? How great cookie tracking is? Or has it been about Adsense … Adsense … and more Adsense?
The demand for published content is growing, and so is the payday. But to benefit from that, you’re going to need more than the adsense cheese pages. To *really* benefit and cash those checks in, you’re going to want quality pages and quality traffic. That’s the ticket – and there’s the big payday for now, as well as for the future.
Hmmm that was easy to figure out. But now to achieve that quality traffic! 😆 Sigh. Something just needs to be done with this Google love-hate relationship I have. 😉
Thanks to TechDirt for the heads up: Is There An Online Ad Bubble?