Sighs of the times

Several pieces worth noting.

From back in February, The Smarter You Are, the Less You Click, in ReadWriteWeb. It begins,

If the latest numbers from online ad network Chitika are anything to go by, then we may well be on our way to the world of Idiocracy. According to the study, which compared click through rates to college education, the less educated your audience, the more likely they are to click through on an advertisement.

While this may be good news for some, it certainly seems to spell doom for supporting intelligent content through advertising.

From almost ten years back, Andrew Odlyzko’s Content is not king. Way ahead of its time, even if current winds continue to blow against his vectors. Andrew concludes,

General connectivity is likely to lead to demands for symmetrical links on the Internet. Hence fiber to the home may be needed sooner than is generally expected.

Whether content is king or not has direct relevance for the question of whether the Internet will continue to be an open network, or whether it will be balkanized. If content were to dominate, then the Internet would be primarily a broadcast network. With value proportional to the number of users, there would be few inherent advantages to an open network. The sum of the values of several completely or partially separate networks would be the same as of a unified network. On the other hand, if point-to-point communications were to dominate, and if Metcalfe’s Law were to hold, there would be strong economic incentives to a unified network without barriers. This is considered more fully in Section 4 of [Odlyzko3]. The general conclusion there is that even though Metcalfe’s Law is not fully valid, the incentives to maintain an open network are likely to be very strong. This will be largely because content is not king, and effective point-to-point communication will demand easy interconnection.

An extreme form of the “content is king” position, but one that is shared by many people, and not just in the content industry, was expressed recently by the head of a major music producer and distributor:

“What would the Internet be without “content?” It would be a valueless collection of silent machines with gray screens. It would be the electronic equivalent of a marine desert – lovely elements, nice colors, no life. It would be nothing.” [Bronfman]The author of this claim is facing the possible collapse of his business model. Therefore it is natural for him to believe this claim, and to demand (in the rest of the speech [Bronfman]) that the Internet be designed to allow content producers to continue their current mode of operation. However, while one can admire the poetic language of this claim, all the evidence of this paper shows the claim itself is wrong. Content has never been king, it is not king now, and is unlikely to ever be king. The Internet has done quite well without content, and can continue to flourish without it. Content will have a place on the Internet, possibly a substantial place. However, its place will likely be subordinate to that of business and personal communication.

From GBN: The Evolving Internet: Driving Forces, Uncertainties and Scenarios to 2025. Specifically,

One scenario describes a familiar roadmap in which the Internet continues on its trajectory of unbridled expansion and product and service innovation. The other three challenge that future, and in the process illuminate various risks and opportunities that lie ahead for both business leaders and policy makers. These scenarios are:

Fluid Frontiers: The Internet is pervasive and technology makes connectivity and devices more and more affordable.

Insecure Growth: Users—individuals and business alike—are scared away from intensive reliance on the Internet as cyber-attacks and security lapses proliferate.

Short of the Promise: Prolonged economic stagnation and protectionism slow the Internet’s spread and potential.

Bursting at the Seams: The ubiquitous Internet is a true success story…until capacity bottlenecks create a gap between big expectations and a more modest reality of Internet use.

I had more on this list, but somehow the post got truncated, and I’m too busy now to find Humpty’s parts. So this will have to do.

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2 comments

  1. Gaspar’s avatar

    “it certainly seems to spell doom for supporting intelligent content through advertising” and it spells doom for promoting intelligent products through advertising, methinks.

  2. Ann’s avatar

    I’ve noticed that my less tech-savvy friends and family (not making judgments on if they are smarter!) are more likely to click on ads. A lot don’t even seem to realize that they are advertisements. Well, that is why I don’t let them know about any of the content I write that uses Adsense. It’s a little sad because I want to share more of my writing, but I guess they are stuck with my personal blog (no advertisements).

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