Is the display advertising model broken?

Selling banner ads on websites is a cut-throat business where supply is outstripping demand and prices are falling through the floor. Unfortunately, it's a situation that is only going to get worse.

Microsoft shelled out a record $US6.3 billion for aQuantive in 2007 at the height of a race with Google Inc and Yahoo to clinch the top spot in internet display advertising, betting on what many thought was a red-hot business. However, the write down of almost all of that deal's value, announced last week, shows how misguided those expectations were, and how brutal the once-thriving business of selling banner ads on websites has become.


SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles