Future of Online Advertising: Esther Dyson in the WSJ

February 11, 2008 Filed under: Web-trends

Care about online advertising? Read this op-ed by Esther Dyson, published today in the Wall Street Journal.

In it, Ms. Dyson explains why behavioral ad networks will devalue to the entire ad industry and why permission-based social network advertising, like Facebook's Beacon program, is where future value lies for the online ad industry.

She says,

The new model creates a more trusted environment for reaching high-value, frequent purchasers, whether of airline tickets, electronics, clothes or other items...

This does not mean that traditional online advertising will go away, just that it will become less effective. Value is being created in users' own walled gardens, which they will cultivate for themselves in real estate owned by the social networks. The new value creators are companies -- like Facebook and Dopplr -- that know how to build and support online communities.

Horray Facebook and Dopplr. Horray BricaBox.

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