Recession + Flawed Ad Model = #Fail
Barry Diller’s IAC is losing money. This isn’t a shock at all. We’ve been pushing our Angle on the ad models that are emerging and yelling at the top of our blog-lungs that the old way is toast. This is an opportunity for "radical innovators".
IAC recorded a first-quarter loss as revenue fell 22 percent in its media and advertising unit, which includes search engine Ask.com.
IAC reported a loss of $28.4 million, or 19 cents per share, on Wednesday. This compares with a profit of $52.8 million, or 38 cents per share, in the year-ago quarter.
New ads are emerging and it’s about the new user behavior. Neal Blaak, an entrepreneur in Silicon Valley, posted his thoughts on it here.
We have arrived at a new paradigm called “User 2.0″ where everyone is connected and is sharing – a world in which social networks have become mainstream.
Advertisers are racing to be relevant right now and are seeking to adapt to the new “User 2.0″ behavior by becoming part of the conversation. Brands, large and small, have turned to twitter and Facebook in an attempt to to be in the know of what is being said and where possible to exert some level of control of the content being shared and consumed.
Meanwhile I bumped into this funny ad YouTube ad "Furniture for Black and White People" – via AdFreak. Is this the future of advertising?
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