There’s a good interview with the [CEO of an online ad firm at Silicon Alley Insider](http://www.alleyinsider.com/2008/2/24_7_real_media_ceo_david_moore) that raises a very good point about **Internet advertising rates**:
Moore: The fact of the matter is the Internet has been either dramatically underpriced or offline media is dramatically overpriced. Right now a reader of the Wall Street Journal might be worth a dollar, but for someone reading the online Journal you get a nickel. That’s 20 to 1 offline versus online pricing. You need 20 online readers to replace one offline reader. So when you talk about pricing overall I think the web is dramatically underpriced already.
(Via O’Reilly Radar.)
While I think most of us in the Internet publishing business would like to think ads are **underpriced**, my gut says **no**.
* Unlike print, very few folks go online specifically for advertising
* Those that do, go to a business’ Web site *directly*, or to a [free](http://www.craigslist.org/) [listing](http://www.kijiji.com/) [site](http://www.zillow.com/).
* Studies show that users are in a “seek” mode most of the time online, so they’re likely looking for the content that’s near the ads
* Eyetracking studies confirm that users very rarely look at the ads once they’ve found the content their looking for
Long term, the Internet is going to prove [disruptive](http://en.wikipedia.org/wiki/Disruptive_technology) to the traditional display advertising model — users can get to advertisers’ information directly without the middleman of a content provider.
What does this mean for content publishers on the Internet? What business model(s) will emerge to [reign supreme](http://money.cnn.com/2006/03/29/commentary/mediabiz/ironchef.jpg)?
I. Wish. I. Knew.