Is The Internet’s Economic Model Sustainable?
I generated quite a bit of negative buzz last week when I riled up some of our readers with a provocative article regarding ad blocking.
While most of the comments were reminiscent of the sort of flaming that killed usenet as a viable platform for discussion, there were a few reasonable readers with opposing viewpoints who took part, and some good arguments were made for both sides.
Ad blocking certainly isn’t going anywhere. It isn’t limited to the Firefox web browser. Ad blocking solutions exist for Internet Explorer, Opera, Safari and Google’s Chrome. For that matter, OS X and unix users don’t even need to bother with a web browser add-on, they can just add offending domains to /etc/hosts. While I doubt that vendors like Microsoft, Apple or Google would ever make ad blocking an intrinsic behavior of their browsers, there will always be someone out there who will pick up the gauntlet and create an add-on to do the job.
The fact of the matter remains, users who utilize ad blocking add-ons are creating and using a derivative of the original content, something that violates copyright law. Not to mention those web publishers who have a terms of service requiring users to view their content in it’s entirety. So, whether for or against ad blocking, expect to eventually see litigation regarding copyright and terms of service violation.
Obviously ad blocking is problematic for web publishers who depend upon ad revenue to make their content available. Is this the end of the internet’s current financial model?
In a word, no.
The amount of users using ad blocking add-ons is miniscule. If 20% of Firefox users are using an ad blocker, that still only accounts for 4% of all internet users. If 10%, or even 20%, of all internet users were using ad blocking technology, you still have the 80-90% that only install add-ons necessary to enjoy content, like Flash. So the web publisher doesn’t really like the idea of people using ad blocking technology, but it isn’t a threat to his livelihood either as long as ad blocker usage levels remain where they are.
I’m all for playing devil’s advocate though, so let’s explore what the alternatives are to the current ad based financial model:
- Membership Sites start charging a monthly fee for membership. This will do three things:
- The vast majority of websites who do not want to provide content for no financial return will disappear. Would you pay $5 a month to read Connected Internet? How about the 40 other sites you read on a regular basis? You guys are probably a lot like me, and are all over the web soaking up information and taking part in discussions. Enjoying internet content just became really expensive, didn’t it?
- The extremely vocal anonymity crowd will lose their minds because they have to sacrifice some of their sacred anonymity to enjoy web content.
- There will still be sites giving you the same content for nothing, except now you are a pirate for using them, just like you would be for downloading the latest music, software or movies. While the small percentage of ad blockers who feel no shame for doing so because they defy the idea of intellectual property won’t care, the average person doesn’t want to intentionally break the law.
- Networks The ad based financial model of the internet has failed, and the larger internet concerns form networks, just like television. Your internet service provider has to pay to access the various networks. As a result, your monthly internet access costs more than what you are paying now. Again, those sites not affiliated with a network who don’t wish to produce content gratis disappear. Your internet gets a lot smaller, and you’re paying more for it.
- Metered use Litigation spirals out of control, and some rocket scientist’s answer is to legislate a mandatory pay-as-you-play scheme for the internet. Some goofy client-server relationship is integrated into the major web browsers, and you are charged by your isp for your actual usage. Sounds expensive to me. Again, someone will work around this, but you’re pirating when you use a hacked browser to get the content for free, and there will be even more litigation.
I guarantee you if any of the above three models ever became a reality that the most vocal opposition would come from the people who presently support ad blocking.
Face it, while the current model may annoy you to the point of running specialized software to subvert it, it’s the best solution we have. Both for publishers providing you the content and for users enjoying access to unrestricted content.
While there may be a sizable chunk of bandwidth consumed by content that is not of use to anyone and which no one would miss, think of all the great content produced by people that would disappear on a web with a different financial model.
Some people use a condescending tone when referring to blogs. I used to feel the same way. I don’t anymore. There are a lot of people out there bringing content to the web that is of tremendous value. You don’t have to be a journalist to blog, and frankly I’ve read better commentary from bloggers on the same topic than what “legitimate” news sites have had to contribute at times. Not to mention that depending on where you live (and yes, this includes the USA) your media news coverage is censored to some degree or other. Blogs are and have been an instrumental vehicle for delivering news that you may not have gotten otherwise. No, I don’t want a web without blogs, even if that means the overall noise level of the internet increases exponentially with their presence.
The ad-based internet isn’t going anywhere, even if a percentage of users find advertising so intrusive that they use ad blocking browser add-ons to filter their content. If you have a better idea please share it in the comments section so I can steal it we can discuss it further.
For more on this subject take a look at Joseph Rosenbaum’s article Ad Blocking Technology – The Potential Effects & Implications.
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I'm just a user of the internet. I work in technology, but I don't have enough knowledge to qualify as a pure geek, so my comments come as an above average, probably, user.
I hear you say you need to make some cash to keep your site going, and to continue to offer content, and I approve of capitalism, so I approve of your desire to make some cash.
Here are a couple of thoughts I have on this.
Firstly, I think you're wrong, yes, we CAN avoid monetization, (more properly called INTRUSIVE ADVERTISING in the context of your article),..I do it everyday, and it is my right to do so. I have a DVR, and I haven't watched a commercial in years on the tele. When a couple of my magazines became more wrought with crappy ads then content, I cancelled my subscriptions, and I am about to do so again if one of my long time favorites doesn't decide to pull back from excessive, unrelated ads.
Monetization, I think, is not the issue, it is advertising placed so intrusively that the average user is tricked or stumbles into launching a new browser filled with complete crap, which they ABSOLUTELY would NEVER buy, because the advertiser TRICKED them into going their, and therefore, the user does NOT trust them, and would not take anything from someone they now perceive as sneaky and untrustworthy.
I've gotten many a call from a couple of older friends and family that became distressed and confused from this assault, and as they try to close the browser, they are again assaulted with scripts until they feel quite violated.
A big screen of breasts and promises for more porno attacked my 79 year old mother last year, and I have her browser absolutely loaded down so that will never happen again.
You say, also, to not visit those sites that are so intrusive. I guess that works if you never visit a new site, or you don't wish to view content from a site that has an owner who has too many advertisers, but great content or services.
This is a new age for advertisers, in my opinion. Sneaking advertising upon us no longer works. It is a world filled with wiser customers.
When I watch House MD on the FOX site, I watch the first few commercials, and make it a point to click on something, at least once. I do the same on ABC, and CBS, who offer content I want, and commercials for products and sites I don't have to be afraid of clicking on. I show my appreciation by wasting a few minutes. I'm not the only one I know who does the same thing.
I donate a few dollars to the sites that ask me to, who provide content that I enjoy.
I watch a commercial or read an add if I am asked politely to do so. Why wouldn't I?
Sure there are a few who couldn't give a damn, and expect everything for free, but I'm sorry, if you so much think that represents the majority of us, and so try to attack ALL of us, YOU need to reevaluate your view of humanity.
Go ahead, I dare you to create something on your site that says, “If you don't mind, would you take a look at this advertising if you like this site, and want to help me keep it going? I can't do it without advertising, and I'd really appreciate your 30 seconds. THANKS!”
NOW THAT'S what's going to make most of us click on the damn links, and help you keep your site going, not intrusive crap that scares us to death, and makes us feel like we're going out in a mine field.
I understand that you think your site's advertising is tasteful, but unfortunately, because so many others, aren't, and the adblockers are not sophisticated enough to tell the difference, yet, add ons like noscript, which I've put on all my family's computers, and suggested to a hundred people, and will continue to recommend whole-heartedly, force you to find a different way to communicate your need for your visitors to view ads.
That's the reality. The burden is no longer on us to dodge crap every few seconds thanks to these addons, the burden is on all of you, the site owners to find a more sophisticated approach.
Perhaps it is true that only a small percentage of users have these adblockers installed, but if I am any indication, that number is going to increase exponentially, because in the hundreds of people I meet and chat about tech stuff with every month, not a one leaves without my recommendation that they install adblocking software, and I hope they feel the same responsibility to pass on the information to all the people they meet.
Somewhere along the way, the scum advertisers have taken over the internet, and the time has come for the user to take back power.
It is a necessary evil in this process that the tasteful site owners must also adjust, but as you were so quick to point out..monetazation as you called it, can not be avoided, and the biggest part of that is giving the customer what they want in the way they want it, or they will no longer GIVE you their business.
Good Luck, and I truly hope you survive what unscrupulous advertisers have created for you to deal with.
Jen
Jen, we really appreciate comments like this, and we doubly appreciate your patronage. My personal feeling is that you are representative of the overwhelming majority of our audience: intelligent, reasonable and willing to participate in discussions regarding issues that we may have differing opinions on. The unreasonable faction is NOT the majority, they are simply the most vocal.
Like I said in last week's discussion, different publishers have different needs when it comes to monetization. A site like AV Enthusiast can get away with a couple of private sponsors and a couple of AdSense units on the page, because the intention is to be a hi-fi news magazine, and because I am not depending on AV Enthusiast for my livelihood. Everton recently quit his day job. This is it for him. Whether or not he makes his mortgage payment this month depends on you guys. As a result he is using more monetization on the page to try to insure his ability to do so.
Above all I hope you continue to enjoy the content we provide here at Connected Internet. You, the reader, are what gives the site real value, because without you we would just be hosting unread content.
The Internet's economic stimulus package are something like How do I get the rebate credit? How do I figure out the amount? How will the payment be made? Times have been tough for most of us this year and you are probably anxious to receive the rebate check if you are entitled to it.
More celebrities are becoming more aware of the environment while turning their newfound passion into fashion. Wyclef Jean is no exception. The Grammy Award-winning musician, humanitarian and Goodwill Ambassador to Haiti announced his partnership
with footwear brand Timberland.site:timberlandsbuy.com
Jean introduced a 16-boot footwear collection and with every purchase of these boots, $2 will benefit the Yele Haiti Foundation, a grassroots movement he founded to support reforestation in his homeland, Haiti. In 2005, Jean founded Yele Haiti to build global awareness for Haiti and helping the country through education, sports, arts and environment programs.site:timberlandsbuy.com
Due to his background, Wyclef Jean is now one of six Earthkeeper Heroes within Timberland’s 2009 Earthkeepers program, which aims to catalyze a movement of environmental and social activists. This partnership will combine music, product, digital and social media, service events and concerts to motivate and inspire fans and consumers to take action in protecting the environment. Jean commented:
“It is not common to find an agreement between an individual and a corporation with so many altruistic synergies. I am truly humbled and excited to begin our journey together. Timberland is not only a brand I have worn as long as I can remember, but now I feel I have gained a friend in Jeff [Swartz, Timberland's President and CEO] and the respect of what is beyond a brand. I have the utmost respect for what he and his company stand for not only in its legacies but in its future. I am looking forward to making change together.”site:timberlandsbuy.com
Timberland’s proven steady returns, low volatility and non-correlation with global stock prices make it an extremely attractive asset class – and one that should be leveraged as an inflation hedge during this time of uncertainty. For this year’s 6th Timberland Investment World Summit, IQPC has convened some of the most outstanding experts in the timberland space to lead discussions that accelerate understanding of this challenging, yet potentially lucrative investment. site:bootsness.com
Senior executives from the entire timberlands value chain will be meeting to discuss critical themes including the changing global market, institutional timberland investment strategies and cashflow generation opportunities. Exciting innovations this year include the Pension & Endowment Fund Think Tank and an Interactive roundtable discussion on key international timberland markets. Offering a strictly off-line and off the record discussion, the exclusive hour-long Pension & Endowment Fund Think Tank is limited to participants from pension and endowment funds. Attendees are invited to bring a specific and current topic of interest or challenge to discuss with their peers, and can be related to portfolio optimization strategies, market timing, access strategies or risk management for timberland investments. site:bootsness.com
The Global Investment Picture for Timberland interactive roundtable discussion serves as a forum for delegates to receive detailed information on the markets in which they are most interested. Key international timberland markets will include Argentina, Australia, Brazil, Canada, Chile, China, New Zealand, Nicaragua, Panama, Russia, South Africa and Uruguay. site:bootsness.com
If the county were to “lock up” resource zoning and take away ag protection, “you are saying residential development is the preferred land use.” Carpenter said options two and three have no protection for oak forest or madrones, a concern raised by several speakers, some of whom were concerned about the impact of Sudden Oak Death.site:diyfootwear.com
Kelly Brown cited a letter to the CAC from Supervisor Mike Reilly refuting Carpenter's proposals. She said Director of Forestry Andrea Tuttle tells Reilly that without local land use protections, CDF has a hard time regulating conversions.site:diyfootwear.com
René DeMonchy of Guerneville spoke for option three. “Water is the issue that shines through,” he said, adding that throughout the county water tables are dropping in direct proportion to the amount of vineyards created. The issue is the public good versus the benefit of a few owners. If it is a property right to cut down a forest and plant vineyards – or broccoli – DeMonchy said he's against it,
because forests maintain ground water.site:diyfootwear.com
He said he loves wine himself, and he believes that most people who don't like vineyard conversions are not against timber harvesting. “But if it destroys watersheds, it is a problem,” said DeMonchy. Our prosperous times now are based on water, he went on, and it is not in our best interests to convert a lush damp forest to what Chris Poehlmann calls a biological desert.site:diyfootwear.com
A vineyard owner said he did the math and it will take hundreds of years to convert the forest at the current rate. He said development, not vineyards, causes wells to go dry. His vineyard has bugs, animals, and all kinds of diversity. He asked for the data on the biological desert idea. He was one of several speakers on both sides of the debate who cited land use in Europe. site:diyfootwear.com
NEW YORK, Aug 6 (Reuters) – Packaging and building products company Temple-Inland Inc. (TIN.N), which is under pressure from activist investor Carl Icahn, said on Monday that it would sell 1.55 million acres of timberland to Campbell Group Inc. for $2.38 billion
and then issue a $1.1 billion special dividend.site:outletconverse.com
The sale is part of a plan that Temple-Inland announced in February, which also includes spinning off two businesses, financial services and real estate. At that time, it had said it expected to return the majority of the proceeds from the sale to shareholders.site:outletconverse.com
Icahn, which has a more than 8 percent stake in the company, at the beginning of the year began urging it to make changes, such as selling assets.
Temple-Inland said it was on track to complete the reorganization by the end of the year, after which it would own only packaging and building products.
The company said Campbell Group, a timberland investment management company in Portland, Oregon, would buy the land with installment notes, which will be pledged as collateral for a nonrecourse loan within 30 days of the sale.
Temple-Inland then expects to use some of its expected $1.8 billion in sale proceeds to pay a special dividend estimated at $1.1 billion, or $10.25 per share. It will use the remaining $700 million to reduce debt. site:outletconverse.com