Monday, October 10, 2005

Advertising revenue for mobilcasting

The rise in advertising revenue on the internet (estimated at $358B for 2004, with a growth rate of 33% and rising) is due to (1) always on connectivity, which enables (2) paid search. These two things make it possible, pleasurable, and productive to use a computer as a substitute for the yellow pages. Of course, none of this would have happened without enough compelling content (Pamella Anderson, free music) to make it worthwhile for consumers to pay their monthly access fees.

With porn and free music taken off the table by the more controlled and less anonymous nature of cell phones, podcasts represent the first examples of content compelling enough to get people to open their wallets. Will it be enough? Don't know. Will the experience be pleasurable and productive? Not at first, but it will get better as bandwidth increases. The other pieces (data plans and search technology) are in place. There is huge potential upside for those who get in early and have sufficient longevity to weather the pack of imitators.

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