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Monday, May 24, 2010

I found this ad today on Reddit and think it is pretty interesting. The issue here is that (excluding 10-20 specific sites like amazon and ebay) the majority of revenue made on the web is from advertisers. ...but for some time now, people have had the ability to install ad blockers which prevent the ads from being displayed. Such a tool can be used to completely destroy the business model of major companies (like Google) and small companies (like Reddit).

Fortunately for these companies - advertisers are really stupid and there is no way to determine whether an online ad is actually seen by an end user. Also, click-through rates are not necessarily reliable. How do you know it is a person and not a computer?

...still, apparently Reddit thinks it is losing money because of ad-blockers. Something to think about the next time you want to go into the advertising business.

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