Chris Anderson, editor-in-chief of WIRED magazine, posited the theory of the Long Tail in 2004. Its essence is this: the world culture and economy is moving away from mainstream (read: average) products towards a very (very x 10) long tail of niche items to suit every taste and quirk. This is supposedly made possible because the internet (along with advancing technologies) have lowered the costs of production and distribution so much, that micro-businesses (read: 1 person biz) providing very very niche products can now find a big enough customer base (because production & distribution costs are so low) to survive. In turn, customers don’t have to make do with the average stuff on the shelves that they don’t really like but can live with.
The implications of this theory are enormous and the evidence that this is exactly where the world is headed is very compelling. Aside from huge online only businesses like Amazon, Rhapsody, Netflix, etc. making hundreds of millions, very small players can also be seen thriving in this new world. One of the more interesting businesses closer to our neck of the woods that has been taking advantage of this trend is Advertlets, a new player in the online advertising market. Pre-2000, I don’t think anyone would have been interested. But given the ever growing trend of bloggers taking more and more advertising money away from mainstream publishers, Advertlets stands in good stead.
To be honest, when I first saw their ads being placed among the local blogging scene, I wasn’t convinced of their method.
Other local players have left a bad taste in my mouth because of the strong arming tactics they use as well as the indiscriminate acceptance (read: bordering on pornography) of advertisements. What I hate the most is the proliferation of local bloggers who place ads claiming they are making lots of money online when they are not. They are only claiming that so that you will buy their so called “secret”- and that’s actually how they make their money. As for those people who buy into it- well, the world will always have more people who would rather make a quick and easy buck rather than work hard for it.
Anyhow, that’s why I thought Advertlets was a refreshing change (at least so far- I don’t know if they will succumb to the pressures as well in the future, I hope not). Aside from the fact that Advertlets seems to have a solid business plan (they discuss it openly on their website), I was impressed by Josh Lim’s vigilance in responding to concerns expressed by his pool of publishers (bloggers).
As someone who strongly believes in entrepreneurship (and that it is more about character than skill), Josh’s dedication to the task is what makes me want to give Advertlets two thumbs up. Forget the fact that Advertlets may be a bit slow in dishing out its script (bandwidth issues) because its something that definitely will get fixed after the initial growing pains. Watch their space … it’s bound to grow into something big.
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