According to a new report, online ad revenue climbed to about $17B in 2006, a 35% gain over 2005.
Branded display ads and search placements helped the online ad industry post its best year ever in 2006, according to numbers released Wednesday by the Internet Advertising Bureau and PricewaterhouseCoopers. Overall, revenue increased 35% last year to $16.9 billion–due in large part to record fourth-quarter revenue of $4.8 billion.
Both search revenue and display revenue climbed 31% year-over-year, to $6.8 billion and $5.4 billion, respectively. Search accounted for 40% of last year’s revenues, slightly lower than the 41% it commanded in 2005. Display advertising, classifieds and referrals accounted for 32%, 18% and 8% of last year’s full revenues, respectively.
See more details here.
Front Porch Forum is just getting its sponsorship program rolling, and we’re going with a flat rate per ad approach. This report states that 48% of online ads work that way, while 47% of the ad deals are based on ad performance.
From today’s Local Onliner…
We’re all guilty of feature creep. A lot of the stuff isn’t especially useful. Now comes Palore. When it comes to directory listings, Palore believes hardly any of the info is useful. In fact, consumers want to know just one thing.
“The interesting thing was that they all wanted just one thing and didn’t care much about the rest. It was all about users wanting to see something very specific and personalized to them when making a local search,” says [Palore co-founder Hanan] Lifshitz, an Israeli who had previously started a banner exchange network. “They didn’t want more reviews or better maps. They wanted to know things like:
* The size of a restaurant’s wine list
* Does the business have handicap access?
* Is the business sustainable / vegetarian / organic etc.
* Is there free wifi access?
* Did the restaurant win any award?With such results in mind, Lifshitz launched Palore in Israel a year ago. The service quickly got 100,000 – quite a landmark in a small country – capped it there, and has been working on bringing it stateside since then. He’s raised $1 million from angels to do so, and has set up shop in the Bay Area.
Sounds compelling. In Burlington, lots of folks just post those questions to their neighborhood forum via Front Porch Forum. Not only do they get good results, but they foster relationships with their real-time in-the-flesh neighbors in the process. Next time, they’ll just call out over the backfence to ask about the wine list… offline. (horrors!)
Also… I was just reading more about EveryBlock, the pre-start-up about to get underway by Adrian Holovaty, late of washingtonpost.com and recent winner of a $1.1M grant from the Knight Foundation. His project… To create, test and release open-source software that links databases to allow citizens of a large city to learn (and act on) civic information about their neighborhood or block. His goal… To create an easy way to answer the question, “What’s happening around me?” Hey! That’s one question again.
A friend just shared this bit from NPR by Google Vice President Vint Cerf (thanks Nancy).
Once, I was being driven by limo to a hotel in Palm Springs to give a speech. The driver appeared to be in his 60s, and I remember thinking, “How sad that he has to keep working at this menial job.” It turned out, though, that he was the retired CFO of a major Chicago-based corporation who had gotten bored with golf. He took a part-time job driving the hotel’s limo, so he could meet people and stay in touch with the world. He even ended up giving some good advice to me, a financially naive engineer.
I believe that every person deserves respect, and that I can learn something new from everyone. Now, I make a point of asking people about their stories…
He goes on to call for civility on online mediums too. Amen… that’s one of planks of the platform on which Front Porch Forum is built.
Some folks have taken the time to share their appreciation of Front Porch Forum with me today. That’s a wonderful thing. As one of them wrote about people’s tendencies to criticize…
Although positive feedback may not make it through as much as negative in general, it’s usually there. So many of us need a gentle reminder to share our positive thoughts and feelings in an effort to build a healthy community (and to give some context for our more constructively critical thoughts).
So this spurs me to share the great experience I’ve had for past nine months with JP Peach and Associates, the web host for this blog and Front Porch Forum. Peach, the man behind the company, knows his stuff and does a great job meeting specific needs. We started at one of the big daddy web hosting companies (although not THE Big Daddy), and they simply could NOT meet our specific needs. With Peach it’s been no problem. And his prices are reasonable.
If you’re looking for a web host along these lines, check out Peach. From the site…
The flexible organization of J.P.Peach & Associates allows us to offer a wide range of services at a significant cost savings compared to other software companies. We are a collection of independent contractors and keep our overhead cost low by not maintaining a bricks-and-mortar location.
Our company and web hosting are built on flexibility. Over the years we have used a large number of web hosting services, from the cheap to the expensive, and have never been really happy with any of them. They forced us into a “hosting package” that never really fit our client’s needs. So, we decided to set up our own server so that we can have full control over it. If you want to host your site with us we will customize the services and software to fit your needs. We have “hosting packages” but they are only a starting point, we will customize the hosting services to meet your specific needs.

[I’m not getting any compensation for this plug… it’s just good karma to acknowledge a job well done.]
The Personal Democracy Forum was intense! Amazing that Front Porch Forum landed me on the agenda alongside the CEO of Google, the founder of Craigslist, best selling authors, a thrice Pulitzer Prize winner, several web advisers to presidential campaigns, A-list political bloggers, top academics, other VIPs, and lots of up-and-comers. I was and am honored and thankful to Micah Sifry for the invitation.
I learned much from the various sessions and hallway conversations. Here’s a photo from Steve Garfield of one panel’s audience (with me typing away on the floor in the foreground),

and another by Caviar…

Front Porch Forum was very well received by a several folks I met there, but not all. Our approach is different enough that it requires a ready and open mind to understand it, and in a “30-second elevator pitch” environment that can be a challenge. That’s fine… many there were eager to know more.
Part of my pitch…
Imagine much of today’s social media occurring among clearly identified nearby neighbors, instead of anonymous distant strangers. It’s happening with Front Porch Forum where 20% of our pilot city has subscribed in our first half-year. Every plumber recommendation, restaurant review, piece of citizen journalism, classified ad, etc. posted not only gets a direct result, but all those messages add up to neighbors getting to know each other and build real community in their neighborhood. People LOVE it!
The speakers’ cocktail party the night before the event was hosted by Google at their NYC digs… definitely not your usual cubicle farm. Here’s the view (thanks to Steve Garfield again)…

Front Porch Forum has enjoyed a surprising level of success facilitating neighbor-to-neighbor connection. In our first half-year, 20% of the City of Burlington has subscribed and put our free service to great use. Thanks and congratulations to the thousands of people who are making it all happen.
Now, we’re focused on developing a local-business-to-neighbor component… our new sponsorship program. We intend to provide snippets about local businesses largely not available elsewhere, AND, in the process, we aim to generate enough income to cover the expenses associated with hosting 130 neighborhood forums across Chittenden County.
We’ve been working on this (and posting updates on the various neighborhood forums) for the past few months. Now, this week, we tested our first sponsor message from Seven Days, the local free weekly newspaper (Cathy Resmer blogged about it)…
SPONSOR MESSAGE
By Seven Days, http://sevendaysvt.com, web@sevendaysvt.com
Wed, 16 May 2007Should Zoe Christiansen be allowed to play her clarinet on Church Street? Find out why this young busker was banned from the Marketplace. Listen to her music and tell us what you think at http://sevendaysvt.com.
We’re sensitive about balancing this new program with the desire to keep each neighborhood forum focused on the neighbor-to-neighbor conversation, so your feedback will be much appreciated. We’re excited about the sponsorship program because it will support (hopefully!) Front Porch Forum as we move forward AND it will give local businesses and nonprofits a chance to connect with various neighborhoods.
We’re still in an early testing phase, so we’re only working with a few sponsors. If your business, nonprofit, agency, special event, etc. is interested in sponsoring a few to all of the neighborhood forums in and around Burlington, please add your information to our sponsor wait list. If you already have joined that wait list and would like to join Seven Days and others in our initial test, please contact me directly. Cheers! -Michael
Paula Routly has a good piece about a local hardware store’s “Rent-A-Husband” service in today’s Seven Days. The dust on this was first kicked up by John Grimm when he joined Front Porch Forum and posted his thoughts… past postings here and here.
Ghost of Midnight is an online journal about fostering community within neighborhoods, with a special focus on Front Porch Forum (FPF). My wife, Valerie, and I founded FPF in 2006... read more