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Advertising 2.0

October 25, 2008

vcmike

Conventional wisdom holds that during the looming recession brand based display advertising will suffer as marketers will be much more likely to shift what spend they have to performance advertising with hard ROI.

While I tend to agree with this line of analysis, I also think it obscures a much more interesting, and important, trend: namely, the emergence of smart display advertising, or “Advertising 2.0.”  I am betting that we come out the other side of whatever it is we are heading into with a dramatically improved ecosystem around brand/display advertising, marked by intelligent use of data, targetting and addressability, and an efficient ad transaction marketplace that looks more like the search market.

In the last few weeks I have seen pitches from a few different companies, and one company I am already invested in, that are working on making this vision a reality.  While the vision is still somewhat hazy and clearly will take a few years to crystallize, the fact that many of the more talented entrepreneurs out there are working toward this gives me alot of confidence it is going to happen.

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