Tuesday, September 15, 2009

The Internet Is Killing Itself Softly With Remnant Ads

Ross Levinhson: AT Fox Sports, 70% of the inventory
was sold. If we sold out all the remaining inventory, I think in 2003,
it meant only $250,000 in revenues. We made a determination that a
quarter of a million dollars at that time wasn’t worth the hassle of
policing it.

On MySpace, we had to create scarcity where there was no scarcity.
So we had the homepage, ad networks were arbitraging. Tom shut that
down, no more ad networks on that inventory. If you have a site like
Hi5 or MySpace or Facebook, creating billions of impressions a month,
you have to find a way to create some scarce inventory so you can talk
to the Best Buys. They don’t want to be next to [remnant ads]

In many ways I think the Internet has killed itself to a degree
because there was a notion that I will just add another page without
maximizing the premium spots.


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