SmoothSpan Blog

For Executives, Entrepreneurs, and other Digerati who need to know about SaaS and Web 2.0.

Stop the Advertising, Please!

Posted by Bob Warfield on November 13, 2007

IBM has released a fascinating report that heralds what it calls the end of advertising.  One of the more fascinating items in the report is the result that 11% of those surveyed would pay a small premium to have a service without advertising.  This is something I’ve proposed before, and I believe it would actually result in more revenue for services, not less.  A fee as low as $2 per month gives the online service more revenue than your eyeballs are worth.  R/W Web estimates this would result in an additional $100M in revenue at YouTube, for example.  That’s real money.  What’s the downside?

I would be concerned about backlash from advertisers.  They may feel this sets a bad precedent and want to boycot services that offer the opt out option.  But given the current propensity to pay for clickthroughs rather than impressions, doesn’t it make sense that if I am willing to pay money to remove the advertising the advertisers should move on?  It does to me. 

Services should start trying this.  It’s not a big deal to offer a premium option without advertising and the end result might just be lucrative.

2 Responses to “Stop the Advertising, Please!”

  1. Udi said

    The type of person that would pay for a site JUST to avoid looking at ads is certainly not the type of person that clicks on ads. A boycott by the advertisers would be silly. This model gets them higher click-through rates on fewer impressions. Nothing really changes.

  2. […] Stop the Advertising, Please!  IBM can quantify how this will turn out. […]

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