High Velocity Media: What’s Next in Online Advertising Revenue

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Duration: 6:55
Source: Stanford ECorner
Author: Tony Perkins, AlwaysOn - Tim Draper, Draper Fisher Jurvetson
Copyright: Creative Commons: by-nc-nd
Found: Nov 5, 2009

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Tony Perkins: So again, back to this idea. I think there’s been a huge behavioral change. I'll give you an example of a statistic, which I think is really interesting. Somewhere between 30% and 40% of the time that we're consuming media and content we're on the Internet. Yet, we just had our on media conference back in New York, somewhere between only 6% and 7% of the ad dollars are invested in advertising on the Internet. So there's this gigantic delta between the old Madison Avenue world and how they're investing their advertising dollars on behalf of their clients and where people are, where the eyeballs actually are. Michael Moe: And the other piece, what's going to make that even more powerful is you see that catch up is that 30%, if you look at younger people, they spend more than 30%. And that's only going to be going up. Tony Perkins: Just in the online advertising sector alone, it seems like there's going to be a lot of cool companies created, trying to help Madison Avenue bridge that gap between the ad dollars that aren't being spent and where all the eyeballs are. Tim Draper: Yeah. This reminds me of something. We have an investment company called Glam. This is also a message for why an entrepreneur is often better off with less money than more. We had invested in this company and he was spending it at a reasonable rate but we didn't really have a business model. This was just a little site for women to go see fashion and that kind of thing. And it wasn't really taking off. And we said, "You got to go cut your expenses in half." And he was so mad at me. He was just furious. And he said, "What do you mean? We've got plenty of money in the bank. This is good for at least 18 months, whatever. What are you telling me I've got to cut it in half? And we're going to have money for three years or whatever. You're totally wasting your money." And I said, "No. We've got to cut this in half until we get a business model." And he just walked away so ...
Language: English
Category: Business
Tags: Tony Perkins, Tim Draper, Michael Moe, AlwaysOnDraper Fisher JurvetsonThinkEquity
Country: United States


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