Why Is Everyone Still Dumping Money Into Banner Ads?

Let's face it: banner ads have been tanking for a long time. The term "banner ad blindness" was first coined in 1998 by Jan Panero Benway and David M. Lane.

In July of '07,Dave Morgan blogged about a study that he conducted with AOL on ad clicking behavior.

Ninety-nine percent of Web users do not click on ads on a monthly basis. Of the 1% that do, most only click once a month. Less than two tenths of one percent click more often. That tiny percentage makes up the vast majority of banner ad clicks.



Monetizing Social Networks

This is going to be a short post...

Many social networks are still trying to figure out how to monetize while others are monetizing off of them. People are monetizing Facebook apps, selling Facebook apps and Twitter clients. Maybe this is a dumb question, but why not make it part of your API agreement that any company making a profit from your API needs to give you a cut? The APIs could still be free, and if an app makes money, the API provider gets a piece. After all, isn't the apps success based largely on the technology provided by the API provider? Just seems like it makes sense to me. I'd love to hear your opinion.