There’s a very simple reason newspapers and periodicals have such a low cover price (usually a few dollars, always less than $5) and are still chock to the gills with advertising.
To charge the advertisers more.
The logic goes like this….
The more a reader pays – the more the actually care about what’s being published.
The more readers care about what’s being published (the price they pay) the more they publication can charge advertisers to reach those readers.
Now, there’s a maximum price where only 1 person pays and a minimum price where the broadest group of qualified (as defined by the advertisers) readers pays.
In the end, the cover price is how the advertisers know the publication is reaching the intended audience.
For example, contrast the types of advertisements within your city’s entertainment weekly to those say in Entertainment Weekly or The Economist or even the NYTimes.
This is the also why annual subscription prices are usually a small fraction of the annual cover price (the difference is the value of your delivery address to the advertisers).
Because so much demographic data can be extracted from IP Addresses – we drop much of the data gleaned from offline purchase decisions in every http request. So any price tag on an ad-filled publication is money a publisher can use to raise their ad rates.
So, what did you pay for? – A higher quality advertisement.
I had a really fun lunch today at the Bewiched Deli (I highly recommend the roast beef w/ horseradish sandwich).
As we were sharing some of the projects ideas we’re working on he stops the conversation suddenly and commands:
“Stay away from advertising. If I have to beat it into you – I will. Stay. Away. From. Advertising.”
When a user visits one of these …. sites, the Web page launches dozens of pages that are hidden from the computer user. These hidden sites are filled with paid links to legitimate websites. Unbeknownst to the user, software built into the …. sites forces the user’s computer to click on these links, sometimes hundreds of times, sending a flood of computer-generated traffic to legitimate websites. – Emily Steel
Note: I removed the adjective Emily used in her piece to describe these sites for its not that different from what JCPenny was accused of doing.
This is simply sandbox to flush out this idea. I promise more incoherent ramblings and typos than usual.
Scrabble now allows proper nouns in some game play. Seems like a great opportunity for Mattel to sell double word scores to the highest bidder.
If every proper noun is marketing, who are you marketing right now?
There’s only one right answer.
25 years ago, Apple announced their new, friendlier, easier-to-use personal computer with the iconic 1984 ad where a heroine throws a hammer – taking down a non-descript technical figure.
Tonight, I watched Verizon’s new DroidDoes.com ad. Verizon is declaring Apple’s iPhone is too friendly, too simplified, too limiting – what you need is a non-descript technical figure to remedy that.
This ad is more than a direct attack on the iPhone – it’s a direct attack on more humane technology offerings. A return to 1983.
This is not a position I encourage other Android providers to take.
Yes, the iPhone does have weaknesses – humanity isn’t one of them.
In case you were wondering what I’ve been doing this summer 🙂
Karl and I have been building and testing the system for a couple of months now and I’m quite happy with it on three of fronts;
- It feels like it makes advertising approachable to people and organizations that haven’t considered it within reach before. Especially, extremely small and locallly-focused people.
- It re-frames publications that already exist (Twitter feeds, blog feeds, etc) as text advertisements, cuz, you know, that’s what they are anyway.
- It extends the real-time nature of Twitter outside of the Twitter silo, helping those people and organizations to get more mileage out of their tweets.
Interested in trying it out? Give MinnPost a call: 612 455 6953.
Yes, the RealTimeAds.com system uses a version of Cullect’s engine tuned for ad serving (verses feed reading).
Here’s the official RealTimeAds announcement from MinnPost’s Joel Kramer
“Imagine a restaurant that can post its daily lunch special in the morning and then its dinner special in the afternoon. Or a sports team that can keep you up-to-date on its games and other team news. Or a store that could offer a coupon good only for today. Or a performance venue that can let you know whether tickets are available for tonight. Or a publisher or blogger who gives you his or her latest headline. ” – Joel Kramer, MinnPost
UPDATE 2: More from Joel Kramer, this time talking to the Nieman Foundation for Journalism at Harvard.