New York Times launched a self-service adversing platform à la Google Adsense at Self-Service Online Advertising - New York Times.
Something is moving in old media land.
We’re profitable and we’ve been profitable break-even or profitable every month since September 2007. We haven’t spent a dollar of our venture capital [~$39 million —Ed.]. We do spend a lot of money on advertising when we want to, like when we launched Farmville. We spent a couple million dollars advertising it and we’re not shy about that.
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Zynga co-founder and CEO Mark Pincus on profitability and online advertising shifting from marketing expense (“you don’t know which half gets wasted”) to sales cost (investment driven by analytics and metrics, there is no budget but only informed investment decisions)
The Profitable, $100 Million-A-Year Startup You’ve Never Heard Of
From a good Facebook advertising platform analysis on Forbes, it seems like there is a premium on reach, rather than on precise targeting.
Generally, the promise of online advertising is targeting pitches at the precise group for your particular product. But all that precision doesn’t make Facebook much more profitable. In fact, typiThe approximately 2,300 U.S.-based Facebook users with a Harvard degree in economics fetch a meager 3 to 13 cents per click. But if you aim to advertise to all 29,000 U.S.-based Harvard graduates, Facebook will suggest a bid of 54 to 71 cents.
That’s precisely why TV advertising is still kicking. Advertisers need to reach vast audiences and niche targeting is not necessarily what they are aiming for. I am pretty sure that even Google struggles to monetize searches with lower volumes.
Instead of volume discounts, advertising commands volume premiums.