David has a particularly excellent blog and writes well, notably about social media, communities and the power of the network. He has produced a snappy 10 slides which I’ve posted below on "Why Traditional Ad Models Won’t Work In Social Networks (and what will)". They make some good points that echo some of the things I’ve talked about here (I particularly like: "They aren’t looking at the stage, they’re looking at each other").
I said in my extended rant below on the requirement for business-model innovation about the parallel need for a change in mindset. From limited to free-thinking. From models based on scarcity to those framed by abundance. It feels to me like this is central to the thorny issue of how to generate commercial and advertising models within social networks that are valued and valuable. Perhaps the reason that they have struggled thus far is something to do with Shirky’s observation that "when the technology gets boring, the social effects become interesting". Maybe we are yet to see the really seismic effects of everyone being connected. Maybe it needs to get to the point where the ad models require the technology but are not about the technology. Which then can properly mean that your marketing is no longer dependent on a scarce resource (your advertising budget), but on an abundant resource (your customers).
We have moved into the knowledge economy. So perhaps future models will focus on abundant resources (like knowledge), rather than scarce ones (like time and attention). If you can present me with the knowledge I need when I need it then I’ll happily receive it. In fact I might even pay for it. Perhaps it is about redefining what media is and does. And redefining an opportunity. As Umair Haque of the Havas Media Lab said recently:
“In an interconnected world, media is everywhere: it’s the stuff that plugs consumption and production together. The opportunities for value creation are greater than ever before – but we must expand our vision of what media is to begin realizing them”