Thursday, January 23, 2014

Internet ad revenues distort website value and content

The internet advertising rate (2013) is, $.89/click-through (the viewer clicked on the link in your ad to go to the page the ad links to), and, $.024 (1/42 cent) per view (the viewer saw the ad). The advertiser will pay one or the other.

Webpage Value Distortion

Such is deceptive, in that it implies that the value of someone viewing a web-page of mine, is only 1/42 of a cent,  less than a tenth of a cent.

However, for me a visit to my webpage, is analogous not to a 'view' of an ad I buy, but rather to, a click-through on an ad I buy, the result being the person viewing the ad has come to my page.

A person who visits a webpage of mine, resembles a person who has clicked on my ad to come to the webpage my ad links to, more than he resembles someone who has merely seen my ad and not clicked through. Small ads containing a link, are dwarfish compared to an entire webpage.

Hence, in a sense, at $0.89 per visit, my blog alone (a small part of my web presence) now running at a rate of about 25,000 hits per year (it reports hits meaning page-views not unique visitors), is worth about $23,000 per year in that it gives me a communication power equivalent to what one obtains via investment of $23,000 buying advertising. So actually I am a big man on campus; this despite the fact that if you value each visit to my page at 1/42 cent the rate a view of an ad on a page is valued, the 25,000 annual hits on the blog are worth only $5.95.

Content Distortion

Thus there exist strong pressures that push content-producers in the direction of turning the content of their page into an ad, or turning the content into something that is partially advertsisement. After all, if a click-through on an ad I have bought, leading the clicker to my web-page is worth $0.89, then why not turn the content of my webpage into an ad, so that every hit on my webpage becomes worth $0.89!

And so increasingly, we see in media and internet, content that is partially advertising in nature, such as 'news coverage' and fiction that is twisted to secretly financially favor a particular special interest. And we are exposed to the negative effects thereof.

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