Ad Auction

The ad auction on the Internet is interesting. I like the fact that it opens up the market to everyone...big and small companies alike. I also like that it keeps your bid right above the highest bid of you competitor. I watched a story on CNBC where a small, custom cowboy boot company garnered success from using AdWords. By simply bringing their self to consumers who actually were searching for content similar to the product offered, they gained success. I think that's the key. Although it is advertising, in a way, consumers generate the content in terms of what is being advertised to them. It isn't intrusive or congested like other ad media. It works and is a very smart way to advertise.

I definitely think this will be how more media will begin to advertise: they will allow users to generate content. I think there are many models that can be created on this premise. For example, many mobile apps are based on very specific and unique content, especially more of the lifestyle apps. If advertising is added, as most are or will be, advertisers can easily target whatever segment they want. It makes a great deal of sense to me. It's almost like cable television. The channels essentially segment the market according to whatever content they provide...and advertisers really take advantage. I know the ads I see on ESPN everyday will not be the same ads that show up on Lifetime, two totally different markets. The future is bright.