February 26, 2004

Out Of Band Advertising

Business Pundit notes a new company's foray into an idea I've previously speculated on being paid for advertising.

Advertising that is directly beamed at the consumer has several advantages all around. The customer list changes from the consumer, the FCC, the broadcaster standards and practices board, and the advertiser's sales team to the consumer, the ad delivery service's standards and practices board, and the advertiser's sales team. This is a nice pro-libertarian moment as it removes the government from the list and the two standards and practices boards will have different clients of their own (the broadcaster's one is also worried about the FCC and losing its license).

Since the ad consumer becomes a more prominent percentage of the customer, more effort will be devoted to satisfying him. Since entertainment and the income to pay for that entertainment are now decoupled, I predict a staggering increase in pay per view content that tracks the spread of this pay per ad model. Your income goes up, you end up spending some of that on entertainment, and you get the bonus that it's no longer so formulaic that they time scene endings for TV commercial insertions.

Posted by TMLutas at February 26, 2004 11:01 PM