Hijacking the Internet
Who's really hijacking
Back in the
day, the "agency discount" for advertising was
15 percent. That means that every time your company
bought a magazine ad, the publishing company got 85%
and the ad agency got 15%.
For a typical business or tech magazine, the
subscription price paid for the printing and postage,
and the advertising paid for the reporters, editors,
photographers, and designers. And things pretty
much worked. Business or tech media wasn't the most
lucrative job in the world, but people could make a
living at it.
Now let's look at
the publisher's share for web ads. It's
about 25% to 45%. Instead of an ad agency
spending 15% of your ad budget on salaries, rubber
cement, and three-martini lunches, you now have a bewildering
array of adtech middleweasels spending 55-75%
of your ad budget on Macbooks Pro (is that even the
right plural—hell with it, copy editing was
the first thing to go) artisan coffee, Big Data,
and gourmet food trucks.
It's an example of the Internet making an industry
less efficient. Which should be in an Economics
paper somewhere, but really, we need to find honest
work for software developers now stuck in adtech.
And for real advertisers to quit the adtech-captured
IAB, but you knew that.
Syndicated 2013-08-17 19:07:58 from Don Marti