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I am interested in pointing to an important new transition in the evolution of Web advertising, something that for lack of a better term I am calling “Ads 2.0.” The thesis is that traditional web ads are being reinvigorated by leveraging social, mobile and local data via API feeds. Banners and other ad units that were formerly static and one directional are now becoming dynamic social media applications in their own right. This is being driven by the ability of new platforms such as Facebook, Twitter, Yelp, Foursquare and others, to capture a variety of user activities such as ratings, check-in’s, status updates and the like; and then integrating these activities into Internet ads. The future of content seems to be based on its decimalization and syndication (ie a short tweet from a person you trust can be far more engaging that the highest bandwidth video from a stranger). And so the future of advertising is likely to follow this path.
