Does the Online Ad Industry Need a Class in Pricing
I have a feeling that this is going to become a theme of mine: the upside down pricing model for online advertising on premium branded sites.
JP Morgan's Imran Khan makes the point that pricing for online ads will fall or remain flat through Q1 '09 and probably through all of '09. We are an a recession, prices fall during a recession. At least that is the conventional wisdom.
I realize how contradictory (and illegal) the following suggestion is, but let's make it anyway. The CEOs of the biggest media companies in the US should meet on, say, the 5th floor of an underground parking garage and agree on an across the board price increase for their online ads.
Given the extreme dangers of deflation to our economy in general, having an area of the economy where prices are going up wouldn't be a terrible idea.
JP Morgan's Imran Khan makes the point that pricing for online ads will fall or remain flat through Q1 '09 and probably through all of '09. We are an a recession, prices fall during a recession. At least that is the conventional wisdom.
I realize how contradictory (and illegal) the following suggestion is, but let's make it anyway. The CEOs of the biggest media companies in the US should meet on, say, the 5th floor of an underground parking garage and agree on an across the board price increase for their online ads.
Given the extreme dangers of deflation to our economy in general, having an area of the economy where prices are going up wouldn't be a terrible idea.
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