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Something from your first paragraph answers the question in your second paragraph! Yes, all advertising will be filtered through Google, Facebook and someone l

Something from your first paragraph answers the question in your second paragraph! Yes, all advertising will be filtered through Google, Facebook and someone like a Verizon (or whichever Telco can weaponize its data best, currently looking like Verizon). What that means is that sites like Reddit can still make ad revenue, but only by filtering it through one of those players. That could mean using Google's ad server tech, or integration with Facebook's audience network, or whatever Verizon comes up with. But yes, most digital ad revenue currently flows through those few players and that will only accelerate. The true future of Reddit and other publications is as marketing vehicles to sell stuff directly to their readers/audience. Ads are basically just a stopgap along the way to content-driven commerce.

dcole2929 11y ago
But doesn't that just seem unsustainable and like a recipe for disaster? In the example you mention Reddit the company is basically tieing it's entire existence to Google's adtech. If google suddenly decides it wants to come out with a competitor and shuts down Reddit's access to the adnetwork, the games over for them as a company. They have no ability to build 1-1 relationships with advertisers because they aren't one of the big players? This also seems like something ripe for abuse. You use Google's AdNetwork because it's the only way to access revenue for advertisements. But google can keep upping the cost of it and companies are left with no choice but to pay it or fold up shop. Maybe this is a good thing and companies shouldn't be relying on ad revenue. This is basically what I tell everyone who comes to me with a startup, mobile app idea. But at the same time, there are companies that provide real value that don't have a lot of other good avenues for revenue.
- adTechGuy 11y ago
  It's not quite that extreme. Google needs publishers so they won't try to squeeze out "reddit" in this example. It's more that they or Facebook or whoever will charge a tax on every impression our hypothetical publisher sellers, reducing their take home revenue slowly over time as the fees add up and increase.
mej10 11y ago
What incentive is there to move to Google or Facebook as long as you are selling all of your ad inventory, and at good rates?
- adTechGuy 11y ago
  You'll move when your biggest advertiser requests that you start hosting your ads on whatever new thing Google/FB tells them is crucial to tracking the performance of your campaigns.

dcole2929 11y ago

But doesn't that just seem unsustainable and like a recipe for disaster? In the example you mention Reddit the company is basically tieing it's entire existence to Google's adtech. If google suddenly decides it wants to come out with a competitor and shuts down Reddit's access to the adnetwork, the games over for them as a company. They have no ability to build 1-1 relationships with advertisers because they aren't one of the big players? This also seems like something ripe for abuse. You use Google's AdNetwork because it's the only way to access revenue for advertisements. But google can keep upping the cost of it and companies are left with no choice but to pay it or fold up shop. Maybe this is a good thing and companies shouldn't be relying on ad revenue. This is basically what I tell everyone who comes to me with a startup, mobile app idea. But at the same time, there are companies that provide real value that don't have a lot of other good avenues for revenue.

adTechGuy 11y ago
It's not quite that extreme. Google needs publishers so they won't try to squeeze out "reddit" in this example. It's more that they or Facebook or whoever will charge a tax on every impression our hypothetical publisher sellers, reducing their take home revenue slowly over time as the fees add up and increase.

mej10 11y ago

What incentive is there to move to Google or Facebook as long as you are selling all of your ad inventory, and at good rates?

adTechGuy 11y ago
You'll move when your biggest advertiser requests that you start hosting your ads on whatever new thing Google/FB tells them is crucial to tracking the performance of your campaigns.