Ad Pricing – Strategies & Rates - Global
By Erina Lin, Monday 21 May 2007 at 18:06 :: Advertising :: #83 :: rss
by Tatiana Repkova
Paying users a share of ad revenues for submitting content to Web sites is becoming a popular practice. Andrew Davies, Marketing Director at idio, looks at the impact this emerging business model could have on the advertising industry at large.
YouTube's introduction of an advertising-revenue-sharing scheme for contributors, a story that even 6 months ago would have been confined to the technology press, made the mainstream news a few weeks ago. YouTube is not the first company to offer contributors a share of advertising revenue, but its market-leading position does in some way legitimise this method as a valid business model. Advertising-revenue-sharing allows contributors of content to be remunerated based on their content's popularity. Although looked down upon by traditional publishers, it provides a great way for contributors to be rewarded for their (often considerable) effort, for online publishers to attract better quality contributors and for advertisers to better reach the increasing millions of eyeballs that view the social web every day. However, traditional publishers do have a valid point: User generated content will, for the foreseeable future, be limited to certain (they would say "cheap") subject types. https://www.netimperative.com/2007/03/19/Ad_revenue_sharing; March 21, 2007
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