Updated with Link to Internet Research Report – condensed.
Recently Piper Jaffray published a 425 page tome laying out their predictions for the internet moving forward into the unknown, titled, “The User Revolution, “The New Advertising Ecosystem and The Rise of The Internet as a Mass Medium.”
To dissect such a document meaningfully over one, two, three or even 5 posts would be wishful thinking (or blogging). To even read the note, however interesting the content, will be an effort spread out over many free moments. However, I’ve read a few pages and thus far, it’s been thought provoking.
Much of the paper’s force, I’m sure can be gathered from its title. “The User Revolution” – essentially this means that technology has empowered anyone with access to the net, to play on a fairly level footing with each other. The only thing preventing you from becoming a powerful source of products, services, information or entertainment is your willingness to create a presence online. A basic online presence is free, (i.e. this blog). More advanced properties can be created with minimal expense. You can do quite a bit with very little. The flow of information is governed by search engines which maintain a neutral POV in their delivery of search results. Of course, the SEO industry is monetizing business’ desire to win over the hearts of Google, Yahoo and MSN.
This low barrier to entry creates a true ecosystem; where from the flow of search results, to navigating a blog, advertisers can prosper right alongside publishers. Whether through paid search, RSS advertising, publishing AdSense (40% of GOOG’s Revenue), email marketing, social media advertising, affiliate marketing or anything you can think of…the landscape will continually give rise to new ways of advertising distribution and traffic monetization. In short, if you can direct the traffic, someone will pay you for this ability.
Finally, it’s a mass medium because everything in our lives can be defined by the internet. We get our news through RSS, weed out bias through selecting trusted content that our proves can approve or disapprove of using social tagging, find suitable partners on dating sites,…I’d venture to say if I were having a kid I’d research baby names through Google. In essence, the value of life can be found on the web…we can define our lives on the web; we can reach out on the web and as this democratization of information stampedes on and is in all our cell phones, the internet will be a digital mirror of the world. Second Life, a simulation already has people spending real $$$ on digital homes!
So expect a wide variety of posts pertaining to data I find particularly interesting from the report. I’ll start us off with a few bullets.
· By 2011, online advertising budgets will hit 11.6% of advertising spend. At present the budgetary allocation sees approximately 7%. By 2011, search revenue will hit $21.5 billion domestically. They cite a 17.5% CAGR from 2006-11. Don’t be thrown by that fancy acronym though, those pesky CFA’s have to obfuscate things with their short hand. It simply means you:
o 2006 Spend* [(1 + 17%)^5] = Compound Annual Growth Rate
· The internet is the leading medium at work, and only 2nd to television at home.
· 550 million US searches daily!
Much more coming soon, feedback welcomed! Cheers!