Jason Preston
Writing

A quick note on Calacanis' Advertising 2.0

It’s pretty obvious that advertising is moving onto the internet in big big ways, and Jason hits the nail on the head when he breaks his reasoning down into this list:

Is the spike over the past year another bubble? I don’t think so, I think the curve is getting more steep due to the following facts:

a) there are more advertisers online today.
b) it’s getting easier to spend money online
c) Google Adsense/Adwords (a huge part of part B above)
d) Yahoo, MSN, AOL, and Google reaching scale, which in turn allows major advertisers to reach comparable audience sizes to TV
e) audiences shifting from TV, radio, and magazines to the Internet.

The real key member of this list is (d) - scale. Google (and other ad networks like Adsense) are going to be set because they take real advantage of the long tail, that millions of small sites with google ads on their sidebar (like mine) will make about $18 a year (like mine) and suddenly Google has 18’s of millions of dollars in revenue.

The real driving force behind increasing ad spending online is the reach that web sites currently have and will be expanding as more sites reach more people.