99% of the websites out there are hoping to attract advertisers.  Most will fail in this endeavor, especially in these days of sharply reduced advertising budgets, but a few will succeed and give hope to all the others.  Look at the situation through the eyes of the advertiser.  It’s easy to “buy” zillions of eyeballs. It just takes money… a lot of it.  That’s what Budweiser does…

But no advertiser is really looking for zillions of eyeballs.  The key is getting the RIGHT eyeballs.  Very few products command a market as large as Budweiser, and that means very few can utilize mediums like TV effectively.  The problem is that, for most products, most of the TV eyeballs are not potential buyers so that most of the advertising dollars are being wasted.  Let’s say you’re trying to sell spjecial chips for building disk controllers.  How many potential buyers are there for these things?  100??  And actually you don’t necessarily want to talk to buyers and purchasing agents.  You’d probably be far more interested in talking to the engineers designing these systems or subsystems to convince them to use your chip in their next design… that’s a smaller set of people and one that’s even harder to reach.  Really think you’ll find them watching Desperate Housewives?  Maybe, but so are 10 million other people and you have to pay the network for all of them too.

OK, so TV advertising is not appropriate… what next?  A good choice might be what are termed “space” ads — generally magazines.  Now you’re probably not going to advertise in Time magazine.  It has the same problem as TV… it’s too broad.  What you’d really like to find is a publication called Disk Controller News… but if there are really only 100 potential readers for this subject, it’s extremely unlikely that there would be a magazine just for them.

That means we’ll have to find a compromise magazine, one that has our 100 target readers without too many others.  To put hard numbers on this, there used to be a magazine called Computer Design with a circulation of about 80,000 readers.  Buying a full 2-page spread (so you can tell the whole story) cost about $15,000.  That meant that running our disk controller chip ad in Computer Design was costing us $150 for each of our 100 target readers… certainly no bargain.  Another way to look at is is that you’re paying for 79,900 readers you don’t care about.

To be fair, this is a terrible example to use in a space advertising environment.  The target audience is so narrow and so specialized, the numbers will always look terrible.  A real-world advertiser would never run a large ad targeted at such a narrow group of readers.  It’s just too expensive.  Instead, they would run an ad covering multiple chip families, one of which was the disk controller chip.  That would spread the cost of the ad out over many more readers.  Of course, it would also limit the message you could deliver for each chip.

But this just makes our point.  If you could find a way of targeting readers in a more effective way, it would make it feasible to promote much more specialized types of products.  That’s what the web does or at least tries to do.  Now don’t misunderstand here.  It’s very easy to spend $15,000 on a website to promote a set of complex, highly specialized set of chips.  In fact, you could easily spend much more.  But if you could somehow attract those 100 target individuals to the website, you could turn them into a community and proactively interact with them and make them part of your process, from chip design to sales cycle.  That’s a lot better than paying $15,000 EVERY time you ran the magazine ad in the hopes of catching the readers you were targeting.

When you build a website dedicated to something as narrow as disk controllers, you are essentially becoming a publisher on that subject.  In the heyday of trade magazine publishing, there were six main magazines and another dozen or so second tier publications with lower, slightly more specialized circulation.  There was no way to beat the problem of buying all those extra readers.  But with the ability to create dedicated websites, it’s as though Disk Controller News just sprang into existence.