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Sunday, July 8th, 2007, 6:27 am

The Dangers of an Advertising Monopoly

THERE have been some heated talks recently about the market distribution in the online advertising sector. An observation worth making is the fact that most companies are in the business of making other companies runs out of business, whether deliberately or not.

With the rise of software as a service, many business rely not on acquisition costs and not on subscription for revenue, either. They use advertisiing instead. It appeals to newcomers and facilitates rapid expansion. But what happens when these businesses rely on a middleman for advertising? What happens when the advertiser itself in among those that compete against Web-based services that rely on it?

Ad BlockingSadly, many businesses rely on companies such as Yahoo and Google, which manage their advertising and connect them with the advertiser. Both ends are customers — the advertiser and the service. The middman gains the most. It is hard to compete with companies such as Yahoo and Google when they in fact make pure profit from advertising. It is almost as though any business that uses a middleman for advertising is sharing the revenue with a competitor. The margins simply cannot be compared.

To use an example, if a company uses Yahoo for advertising in its specialised CMS, then Yahoo gets a share of the profits. If Yahoo wanted to compete head-to-head, it would not be subjected to the same third-party ‘taxation’. Therefore, it would find it easier to compete.

With this little load of my mind, perhaps it’s worth adding that advertising will always remain a controversial thing. It is a form of brainwash. Marketing lies.

One Response to “The Dangers of an Advertising Monopoly”

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    The Dangers of an Advertising Monopoly

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