Popular on TelAve
- NWIDA Welcomes Matt Zieminski to Board of Directors as Legislative Strategy Lead
- Pyro Marketing Opens New Digital Marketing Company to Power Growth for Fitness and Ecommerce Brands
- $18 Price Target Issued in New Research Report After $34 Million Revenue Forecast from Acquisition; $101.5 Million Net Revenue in 2025; NAS DAQ: IQST
- The AML Shop Launches New Financial Investigations Unit, Appoints Director to Lead the Initiative
- Cynthia Pinot Among Artists Selected for Renowned London Art Biennale 2025
- New Release: 'The Invisible Alternative' Unveiled by Atrisk Corporation, Resilient
- West Dentistry Welcomes New Oral Surgeon to Enhance Patient Care
- Real Estate Experts Highlight Jersey Shore as a Smart Buy in 2025
- SacraPod Suites Unveils AI-Powered 'Work + Rest' Smart Hospitality Model for Retrofitting Underused Motels Across the U.S
- BIYA Forecasts 2025 Surge with ¥300M ($41.8 M USD) in Revenue and ¥25M Profit from Cloud Based HR Solutions: Baiya Intl. Group (N A S D A Q: BIYA)
On the 30th anniversary of the Netscape IPO the inventor of the banner ad warns: "Trouble ahead."
TelAve News/10870922
Author of the new book, "How the Web Won", cautions that AI is showing clear signs it's upsetting the fundamentals of the $790 billion digital advertising industry. Businesses that depend on the "blue link" economy need to radically rethink their media strategies.
NEW YORK - TelAve -- AI is having a huge, and largely unreported, negative impact on the "blue link" economy, which includes millions of companies that depend on digital advertising for their revenue, both on the buy and sell side, not the least of which are Google and Meta.
"The Internet economy has been prosperous for so long that many people have forgotten its roots," says Ken McCarthy, author of the new book, How the Web Won.
As late as November 1994, no one had a clue how the Internet was going to be successfully monetized. The answer came from the invention of the humble banner ad, which took place at a small conference McCarthy hosted in San Francisco in May of 1994. Thirty years later, in 2024, the global digital ad business was $790 billion, or 72.7% of the entire $1.09 trillion global ad market.
More on TelAve News
Digital advertising still follows the simple guidelines McCarthy laid down at that historic meeting: (1) display the ad, (2) count how many people click on it, and (3) calculate the clickthrough rate. The first company to do this on a commercial scale was Hotwired.com, a division of Wired Magazine. Rick Boyce was the company's sales director.
Today, 1 in 5 Internet visits begins with a search, and it's not unusual for a major public company to derive 50% or more of its traffic from search results. AI has already reduced traditional searches by 10%.
Industries being particularly hit hard include travel and tourism (down 20%), e-commerce companies (down 9%), and news and media (down 17%). Individual companies reporting search referral declines include: Schwab (down 14%), TripAdvisor (down 34%), Starbucks (down 41%), and Netflix (down 23%).
"The Web is fundamentally a question-and-answer machine. In fact, Tim Berners-Lee, the co-inventor of the Web, modeled it after the popular Victorian era question-and-answer book, Enquire Within Upon Everything, which was in his family's home as a child. Users of AI are discovering they're getting better answers than they get from search, and search companies, like Google, are seeing their search revenue go into reverse," says McCarthy.
More on TelAve News
What does the future hold? Part of the answer lies in McCarthy's book, How the Web Won. "Until we came up with the formula in 1994, no one had a clue how the Internet was going to monetize itself. How we came up with the answer is detailed in the book, and the same approach we used would work today."
HowtheWebWon.com
"The Internet economy has been prosperous for so long that many people have forgotten its roots," says Ken McCarthy, author of the new book, How the Web Won.
As late as November 1994, no one had a clue how the Internet was going to be successfully monetized. The answer came from the invention of the humble banner ad, which took place at a small conference McCarthy hosted in San Francisco in May of 1994. Thirty years later, in 2024, the global digital ad business was $790 billion, or 72.7% of the entire $1.09 trillion global ad market.
More on TelAve News
- Jewellok Unveils Cutting-Edge Specialty Gas Changeover Manifolds to Revolutionize Industrial and Medical Gas Delivery
- Press Snooze on Summer: 8 Inns Team Up to Help Guests Sleep In
- Early Bird Registration Now Open for the Inaugural OpenSSL Conference 2025
- "Google AI and the Quiet War on Sovereignty: The Case of Aquitaine"
- Immigrant-Owned Businesses Across U.S. Face New SBA and Equipment Financing Barriers
Digital advertising still follows the simple guidelines McCarthy laid down at that historic meeting: (1) display the ad, (2) count how many people click on it, and (3) calculate the clickthrough rate. The first company to do this on a commercial scale was Hotwired.com, a division of Wired Magazine. Rick Boyce was the company's sales director.
Today, 1 in 5 Internet visits begins with a search, and it's not unusual for a major public company to derive 50% or more of its traffic from search results. AI has already reduced traditional searches by 10%.
Industries being particularly hit hard include travel and tourism (down 20%), e-commerce companies (down 9%), and news and media (down 17%). Individual companies reporting search referral declines include: Schwab (down 14%), TripAdvisor (down 34%), Starbucks (down 41%), and Netflix (down 23%).
"The Web is fundamentally a question-and-answer machine. In fact, Tim Berners-Lee, the co-inventor of the Web, modeled it after the popular Victorian era question-and-answer book, Enquire Within Upon Everything, which was in his family's home as a child. Users of AI are discovering they're getting better answers than they get from search, and search companies, like Google, are seeing their search revenue go into reverse," says McCarthy.
More on TelAve News
- Legendary N.W.A. CoFounder & Tech Visionary OG Arabian Prince Joins Tech Coast Venture Network Board
- Former Irvine Mayor Farrah Khan Joins Tech Coast Venture Network Board
- Free Word of the Day Newsletter Launches Just in Time for Back-to-School Season
- DT Digital Relaunches as Redouble Digital, Expanding from Freelance Operation to Full-Service E-commerce Marketing Agency
- TL International Group Ltd Terminates Franchise Agreement with Apollo Rent A Car
What does the future hold? Part of the answer lies in McCarthy's book, How the Web Won. "Until we came up with the formula in 1994, no one had a clue how the Internet was going to monetize itself. How we came up with the answer is detailed in the book, and the same approach we used would work today."
HowtheWebWon.com
Source: Ken McCarthy
0 Comments
Latest on TelAve News
- Advantai Group & One NZ launch groundbreaking Mobile solution to supercharge brand loyalty in NZ
- Shincheonji Reaches World-Class Level At International Taekwondo Competition
- TNT Removal & Disposal Celebrates Record Year Helping Pennsylvania Property Owners Reclaim Space
- SpaceWERX selects New Frontier Aerospace to Develop Bifröst Orbit Transfer Spacecraft
- Postmortem Pathology Offers Expert Autopsy Services with Dignity and Accuracy
- Private Autopsies Provide Families in Colorado with Answers and Closure
- Vijay Tirathrai named Managing Director in Dubai, UAE
- How smart women use BAY Miner cloud mining to easily earn Bitcoin every day
- Qualis LLC Appoints Jeremy Mallicoat as Chief Financial Officer to Advance Growth and Acquisition Strategy
- Bynn Intelligence Reinvents Document Fraud Detection with Groundbreaking Acquisition and Revolutionary AI Model
- 2A Commerce Launches Firearms eCommerce Platform
- Exposing Psychiatric Abuse, CCHR Has Pushed for Global Human Rights Protections
- RDG Mining launches 1-day XRP、BTC mining contract, XRP short-term investment users surge 500%
- Donna Cardellino and Paul Lafrance Sign Exclusive Deal for Worldwide Expansion into Commercial and Luxury Real Estate Design Projects
- New Book "Three Permissions" Redefines Self-Leadership for a Burnout-Weary Culture
- Opening a new era of USDC smart cloud mining: CJB Crypto makes digital dollar earnings within reach
- The Evolution of the BDCV Platform: Empowering Mental Health & Wellness
- Philadelphia HVAC Company Bypasses Paid Search Ads, Citing Cost Savings for Customers
- Block AI Labs Empowers Startups with Affordable, AI-Driven Software Development from U.S. and Colombia Ask ChatGPT
- "The U.S. is Running Out of Workers" – New Book Offers Urgent, Research-Backed Solution to the Workforce Crisis