297 LinkedIn Connections and Another New Ad Network

It looks like sometime this week, possibly this afternoon, I will cross the 300 connections threshold on my LinkedIn profile.  Not surprisingly, my facebook friends list contains only about 18% as many friends.

Considering there are plenty of people out there with over 500 connections in their “professional networks” on LinkedIn, this isn’t really anything to brag about and definitely isn’t the reason I chose this topic today.

The reason I selected this topic is because earlier this week in an article on TechCrunch dot com I learned that LinkedIn was getting set to launch its own ad network.  Later that same day the same site published an article discussing the fact that MTV was going to do the same thing.

What’s so compelling about this is the fact that the Internet has become saturated with ad networks looking to duplicate the cash cows that Google struck it rich with ( AdWords & AdSense).  This extreme level of saturation can be seen with ad networks such as AdBrite, AdReady, Text Link Ads, Pepperjam Network, Bidvertiser, Kontera, Performancing Ads, AuctionAds, Federated Media, ScribeFire Quick Ads and a host of others.

Where the problem comes in is with the fact that consumers have now subconsciously trained themselves to block out all of the visual noise that is created by sites littered with advertisements.  Where that can’t be done, they are simply abandoning sites in search of more reader friendly Internet resources.  Couple that with higher-than-average inflation and a lethargic economy that has severely depleted consumers’ discretionary income and advertisers are left with the impression that no matter how inexpensive Internet advertising campaigns might be (based on CPM measurements relative to print and other traditional media advertising options) they lack effectiveness and the ability track conversions.

All of which points to the fact that both LinkedIn and MTV may soon find that without an enormous nationwide sales force pushing the value of advertising on their unproven networks over alternate and more established networks like Google’s and the others mentioned above, that they are in for a rude awakening that will likely result in a large investment that will yield disappointingly small returns.

I look forward to seeing what Web 3.0 brings us.  I am especially excited about opportunities available through the broad proliferation of smart phones and mobile computing.  I honestly believe that LBS ( location based services) that allow advertisers to identify the specific locations of consumers who opt-in to receive promotions from them, then transmit promotional materials such as daily specials or coupons to their phones when they are within a specific vicinity of one of their brick and mortar store fronts, will be the next big wave in Internet advertising technology. 

The organization that is first to harness this capability and convince a broad base of advertisers to adopt it is certain to be the next big winner in this increasingly competitive marketspace.

Comments are welcome and encouraged.