Posted by: Matt Shanahan In the debate about business models for digital publishers, the cost of audience impressions is often underestimated. The expense to create a sellable inventory of impressions requires more than content production, it also includes the cost of audience development, which can greatly exceed the cost of content production. The classic example of this content vs. audience cost dynamic is “The Blair Witch Project” movie. “The Blair Witch Project,” whose final production budget was somewhere between $500,000 and $750,000, cost over $25,000,000 to market. As the competition for audience impressions increases, the sophistication and cost of acquiring audience impressions is also increasing. This leads publishers to decide whether the return on investment from acquiring more fly-by impressions is greater than the […]
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