All day this Monday and Tuesday, we’ll be rolling back tuition for System 2010 to 2009 levels to celebrate the Saints making it to the Super Bowl.

Four and a half years after the federal levee failures – forty-three years after the start of the franchise – and New Orleans is headed to the Super Bowl.

Who dat say dey gonna beat dem Saints!

The two-day sale is on now: click here

If you’re wondering what the next decade is going to bring for Internet marketing, consider this:

At the end of the last decade…

* Dotcom stocks were heading straight up in one of the biggest orgies of manic stock buying the world has ever seen

* Banner ads were selling at massive (and irrational) premiums

* Pay-per-click advertising (then offered by just one company, GoTo.com) was considered an oddity

* Yahoo was the 800 pound gorilla in Internet media

What a difference ten years can make

Today:

* The NASDAQ still hasn’t come even close to recovering its Year 2000 heights

* Banner ads are sanely priced

* Yahoo appears totally hopeless

* Pay-per-click advertising (mainly in the form of Google AdWords) has taken over the world

Crazy times

I was there ten years ago.

Actually, I was there seventeen years ago (1993) when I started making my first tentative experiments online. I had the once-in-a-lifetime thrill of witnessing and participating in the birth of a new medium.

But all was not sunny in Internet Land.

By 1998, I reached a point of total bafflement at what was going on in San Francisco and Silicon Valley in the Internet industry I helped pioneer.

People I knew to be hopeless idiots and in some cases outright scammers were being helped by New York investment banks like Goldman Sachs to loot billions of dollars from the stock market by selling shares in companies so loony that they defied belief.

That year, the fall of 1998, I voted with my feet, said “bye” to the Bay Area digerati crowd (who thought I was nuts) and moved back east to the sleepy, beautiful and then low-priced Hudson Valley to wait for the inevitable.

A year and a few months later, New Year’s Eve 1999, I watched in amazement as Internet shares that were already insanely priced went straight up.

Then it all fell apart

By the end of 2000, Internet companies were vanishing in droves.

Companies valued at hundreds of dollars per share were selling for pennies…if they were still in business at all. And as the months progressed, the implosion became more and more severe.

When I went back to San Francisco in 2003 after having been away for nearly five years, it was like a neutron bomb had hit the place. The buildings were still standing, but the people – and the companies – were gone.

In the middle of the wreckage, I did something that a lot of people thought was crazy. In 2001, I started working on a new Internet marketing training. In 2002, I launched it.

It was called the System Seminar.

The turn around

I created the System Seminar with a simple premise…

In spite of the crash of bogus Internet companies, the Internet itself was as solid as a rock – and it was going to grow, this time for real.

How could I be so sure?

For the same reason, I was willing to risk substantial time, money, energy and my reputation for sanity by putting on the first web marketing conference ever (November 1994, San Francisco.)

This time around though, things were going to be different.

The big change

The big change – and we built it right into the very first System Seminar – was that Internet advertising was going to be based on careful calculations of ROI (return on investment.)

In a way, this was nothing new. Old school direct marketers have been tracking the profitability of their ad buys for decades.

But this was a brand new concept to many on the Internet.

It’s hard to believe now, ten years after the fact, but it’s true. Before the System Seminar, only a handful of scrappy Internet entrepreneurs were tracking anything besides “hits” and the cost of banner ads.

I’m not going to take credit for the massive sea change that’s taken place in the last ten years

But I will take credit for being the first to put it on the line to teach this approach as the only one that makes sense for Internet marketers when nearly everyone else was still talking about “branding” and “mindshare.”

The big change – Part Two

In 2002 (2001 actually if you count our early beta trainings), the System Seminar was the only place on earth where you could learn an integrated approach to Internet marketing…

…One that combined smart online media buying and careful results tracking with “old school” smarts like direct response copywriting and list management.

From the very beginning, our focus was on pay-per-click. We even mentioned Google AdWords at our first seminar, even though it had only just launched and no one really understood how it worked yet.

Fast forward a few years and two of the attendees at that first System seminar (both then total PPC “newbies”) wrote what have become the two definitive books on the subject (See Perry Marshall’s “Ultimate Guide to Google AdWords” and Howie Jacobson’s “Google AdWords for Dummies.”)

Thanks to its PPC revenues, some say that Google is poised to take over the earth.

Not so fast Google

Here’s what absolutely won’t change in the coming decade:

* The Internet will continue to be a central part of hundreds of millions of people’s lives. If anything, it will become even more central as the Internet solidifies its position as the “central switching station” for all media: text, audio, video, buying, selling, communicating, chatting, gossiping etc.)

* Consumers will continue to seek VALUE in their purchases and if my crystal ball is working, they will be even more militant about getting value for their money in the years to come.

* Advertisers – the ones who are going to survive that is – are going to become even more sophisticated about tracking their results and making sure they get the best possible value for their money.

What this is going to look like is smart Internet marketers diversifying away from Google AdWords.

AdWords will continue to be an important part of the mix, but anyone who is not taking energetic, aggressive steps to free themselves from dependence on Google for their traffic is going to have cause for regret.

Strategy for System 2010

I’ve been writing ad copy since I was in high school and started paying the rent with my efforts back in the mid 1980s.

I am a serious student of the game.

Copywriting is the switch that turns raw traffic into money.

I don’t know how to state it forcefully enough but here goes: Traffic is worthless without masterful conversion and conversion is just a fancy word for ad copy, so in a very real way the whole game of Internet marketing boils down to copywriting.

In all the noise about Twitter, Facebook and other “mindshare building tools” a lot of internet marketers have lost sight of what matters in Internet marketing.

To bring us all back to reality in 2010, I’m bringing in two Big Guns of the copywriting world to System 2010 – both multi-decade veterans who write real ad copy for real companies selling real products to real people. Both master teachers…

But don’t take my word for it. They’re both published authors with their books continuously in print: Bob Bly from the US and Drayton Bird from the UK. Google them.

The other piece of the puzzle: traffic

Great copywriting, as important as it is, is not enough.

You need the second part of the equation: traffic.

I’m a big fan of SEO, article marketing, JVs, viral marketing and all the other “free” ways you can drive traffic on the Internet. Over the years, we’ve offered scores of trainings and master classes on these subjects.

But none of these methods can hold a candle to the simple, reliable method of simply buying the traffic you need.

If you want to maximize your potential on the Internet, buying traffic is where it’s at.

Here’s why:

Buying traffic lets you turn on the traffic you need right now, not weeks and month from now.

If you’re already a traffic buyer you already know that Internet traffic is the Eighth Wonder of the world.

You can buy a little, test it, amplify what works and turn off what doesn’t.

It takes skill, know-how and paying attention, but knowing how to buy Internet traffic comes as close to money-on-demand as anything on earth.

Why it’s so hard to get good information about traffic buying

Two facts:

1. There are no “old” traffic buyers. Not yet, anyway.

Most of the traffic sources that matter today (like pay-per-click) weren’t even around ten years ago.

2. People who are good at traffic buying generally don’t teach.

Traffic buying is a demanding and lucrative specialty. Taking time away from the main event to teach it to others is not something most traffic buyers ever think of doing, let alone are willing to make the serious effort to do.

That’s where the System Seminar has a major leg up over every other Internet marketing training.

Just as people like Perry Marshall and Howie Jacobson were motivated by their experience as System Seminar students to document and share what they learned about AdWords, the new generation of System-inspired Internet marketers is ready and willing to do the same with what they’ve learned about the nut and bolts of buying traffic today…in 2009, soon to be 2010.

Our System 2010 traffic faculty

For the first time ever, we’ll have traffic buyers on this year’s System faculty who have spent (and continue to spend) and track millions of dollars of their own money on Internet ad buys: Greg Davis, who specializes in high volume mass appeal consumer offers and Ben Moskel who specializes in a highly competitive niche where traffic costs are at a premium.

Both are real-world experts in uncovering new traffic sources, testing them, and figuring out how to make them pay. Their knowledge is not theoretical – and you won’t find it in any book or course. It’s based on the market as it is right now.

To round out our faculty, Google-certified Timothy Seward of ROI Revolution who guides the purchase of tens of millions of dollars a year in traffic for over seventy companies, will share his perspective on what’s working today, where things are headed, and what it takes to maximize the profits of an Internet business.

Steal this seminar

If you’re reading this before January 1, 2010, you have the chance to get all this cutting-edge knowledge at a bargain basement price.

Every year, we make the System Seminar available to people who can make an early decision to get a bargain price.

If you’re an Internet marketer and you’re already buying traffic for your business, System 2010 will be some of the best time and money you’ve ever spent.

If you’re looking to make the leap into Internet traffic buying, System 2010 will:

a) show you what’s really involved (no sugar coating),
b) cut months if not years off your learning curve, and
c) help you get where you want to go faster without making expensive mistakes.

The fact is one wrong move in traffic buying can easily cost you several multiples of the price of System Seminar 2010. (You may even be making an expensive traffic buying mistake right now and not even realize it.)

Our traffic buying faculty has already made most of the big, dumb, expensive mistakes so you don’t have to.

Even more important, they’ve dug up traffic sources and refined tracking methods that are practically guaranteed to improve your bottom line.

Early Bird Registration Deadline: December 31, 2009

How much for this hard won, can’t-be-found-anywhere-else knowledge?

For the multi-decade experience of two master direct response copywriters with hundreds of campaigns each under their belts…

For the rough and tumble know-how of two master multi-million dollar traffic buyers…

For the insights of one of the sharpest Internet campaign advisors in the business, certified by Google…

And for the insight of yours truly, the guy who’s been at this now for seventeen years, consistently finding you the right people at the right time for your next right move?

Check it out.

You may be pleasantly surprised at how affordable all this is when you’re an early bird.

But do it by midnight December 31, 2009.

Details:

http://www.TheSystemSeminar.com

Ken

P.S. Happy New Year!

It doesn't really look like this…it's 1,000 times better

There’s always one day that stands out from all the rest. I think this Sunday was the day.

If you wonder why I live in Tivoli, NY in the summer and fall, this picture is my answer.

How did you spend your summer vacation?

What I thought was going to be “kick back and relax” summer turned into a travel and study marathon:

Vancouver, New York City, Maryland, London, Manchester…over 10,000 miles traveled and at long last…home.

Who benefits?

You do.

Here’s some freebies to get your fall season off to a strong start:

1. Free Google AdWords course

Three-time System faculty member Timoth Seward is giving away a complete basic training in Google AdWords.

http://www.smartbeginners.com/adwords/

2. Remembering Ken Giddens

Ken Giddens passed away four years ago this month and he is still sorely missed.

He was one of the bona fide pioneers of our industry and an inspired and generous teacher. For those who knew him, and those who didn’t…

Lessons and recollections from his friends and colleagues: http://thesystemseminar.com/kengiddens/audio.html

This was Ken’s first seminar talk. It was at the System Seminar in 2004.

Videos from System Seminar TV.com

Ken McCarthy, Greg Davis and Lloyd Irvin at Lloyd’s private gym

If you stick with anything long enough, life takes all kinds of fascinating twists and turns.

I was planning on a “kick back”, hang loose summer, but when you’re in the Internet marketing world you have to be prepared for pleasant surprises.

A couple of months ago Lloyd Irvin sent me a long text.

Lloyd is twice world champion in Brazilian Jujitsu and twice US champion in Judo and Russian Sambo. He’s also a heck of an entrepreneur and has interests in a number of areas including publishing, Internet marketing, and real estate. With a small, highly effective team he’s built a very successful business.

I’m proud to say that the System helped get Lloyd off on the right foot on the Internet, a fact he graciously shares with everyone who asks. In turn, he’s been an inspiration to me – and when Lloyd talks, I listen.

So when Lloyd sent me a long text raving about the breakthrough work of his colleague Greg Davis, I decided to waste no time, get on a plane and get myself to Maryland to see first hand what had gotten him so excited.

Long story, short version

Greg’s one of those guys who’s been working diligently for years on cracking the Internet marketing code. You know the routine…endless experiments. Some of them bomb. Some work, but not well enough to get excited about. Two steps forward and sometimes three steps back.

But he stuck with it and along the way he accumulated experience and KNOWLEDGE.

Greg was one of the early pioneers who bought clicks from GoTo when you could get keywords for a penny because no one else was smart enough to recognize their value.

Bit by bit, things started to click for him (pardon the double pun) and he watched his income grow until he got to the point that keeping his 9 to 5 job was not only no longer necessary, it was absurd.

Then through a combination of his own deep study and a few critical insights from Perry Marshall, Glenn Livingston, and Gauher Chaudhry plus mentoring from Lloyd (not-so-coincidentally all these guys have been System faculty members), Greg made a truly big breakthrough.

How big?

Wealth beyond your wildest dreams

Greg’s numbers are so big that I hesitate to say because a lot of people are going to have trouble wrapping their minds around them.

Let’s just say Greg nets in a week what a lot of people would be very happy to make in a good year – and he does it with bare bones overhead. And most importantly, it’s based on a formula that works over and over again. As long as there’s an Internet and people are spending money on it, this system will work.

Though you may be aware of some of the elements (PPC, CPA, affiliate marketing, tracking and testing conversion), I guarantee you’ve never seen this system before.

To help me keep up with all the info that Greg was willing to share with me, I brought System grad Ben Moskel who does over $1,000,000 a year in affiliate sales generated by pay-per-click.  The whole weekend we visited with Greg and Lloyd, Ben never put his pen down.  I swear at times I thought it was going to start smoking he was writing so long and hard.

The Internet marketing brain trust: Where killer Internet marketing ideas are born. If past is prologue, months, even years from now, the hot air “gurus” will be trying to peddle the leftover scraps from this weekend for thousands of dollars a pop.  If you were part of the System, you’d be getting it whole while it’s still fresh.  Left to right: Lloyd Irvin, Ken McCarthy, Greg Davis, Chris Chico, Ben Moskel

Chris Chico, another very savvy Internet marketer, was also invited to sit on in this very private two day session. Here’s a picture of the five of us together at the end of the weekend. We were visiting Lloyd’s training facility in Camp Springs, Maryland  just around the corner from Andrews Air Force base, right outside of Washington DC.

When he’s not running his chain of martial arts schools, publishing, training entrepreneurs, dealing in real estate, starting and growing Internet businesses, Lloyd trains UFC fighters.  It’s been a mystery to me how this one guy gets so much done. Then I met his team.  Sharp, smart and tight. If Lloyd ever gives a seminar on how to build and manage a world class team, all I can say is “Go!” I’ll be sitting in the front row.

OK, how does Greg make all this money?

I know what you’re thinking…”Glad you had a great time in Maryland Ken, but get to the money. The money.”

There are three levels to what Greg does:

Level One: Good, solid, old school affiliate marketing, the kind that can get anyone who applies themselves to the $500 to $5,000 a month level.

Level Two: Greg is a master of the tools, strategies, tricks and techniques of affiliate marketing.  No one knows everything – and Greg was wide open to learn from everyone at our private meeting – but when it comes to high level, deep KNOWLEDGE of how to shake the affiliate money tree, he’s got it – and that’s what got him to $500 to $5,000 a day.

Level Three: This is where Greg is at now. Again, for the reason I gave earlier, I’m not going to even talk about his current numbers, other than to say they make Level Two look sad and forlorn.

His years of effort, study and testing paid off and gave Greg a profound insight that “flipped” regular affiliate marketing upside down and turned it on its head.

Bottom line: A whole lot of what you’ve heard about the “right” way to do affiliate marketing is backwards. Yeah, it will work and it will make pretty good money, but if you want rock star money, crazy money that makes even Internet gurus gasp, you’ve got to enter into what I can only call Planet Greg, an alternate – and very profitable – universe.

And I’ll tell you straight up, most people are not ready for it.

They don’t have the necessary foundation of experience and knowledge to be able to execute what Greg is doing, let alone understand it.

Besides that, after looking at Greg’s system for two solid days, my advice to him was to put a padlock on it. No amount of money he could ever make teaching would ever compensate him for letting the cat out of the bag.

He asked me for my honest advice and that’s what I told him.

But the door is not closed…

Greg can definitely help you if you’re at the beginning of your affiliate marketing path (seeking to make $500 to $5,000 a month) or if you’re a pro who wants to leverage your current know-how into a lot more revenue ($500 to $5,000 a day.)

I can tell you from working with him for two days, he’s a masterful and generous teacher. It would be great to have someone like him inside the System circle teaching.

So, I took a shot and asked him if he’d like to come to London and present at our upcoming UK Intensive.

Think about how significant this is. I created the UK Intensive specifically to highlight UK Internet marketing wizards, but Greg is so extraordinary I decided to throw out my playbook out and ask him, a Yank, to teach.

After thinking about it a bit, he said “sure” so I’m happy to report that the first live public training given by Greg Davis in advanced affiliate marketing (traffic + conversion) will in London this September at the System UK Intensive. Will there be another? Who knows? I know the fact that this event is in London was a big hook for Greg and his wife.

The last I checked registrations are already a hair over 2/3 sold out and as you know, I’ve barely even advertised the thing. As the date gets closer and I get on the job, we’re be closing the doors on this one pretty quick.

I don’t care where you live. If you’re in Internet marketing and you’ve got a chance to spend some time with this guy: take it.

This development has been so sudden, we haven’t had time to include Greg in the description of the course, but here’s how to get all the info about the rest of the program.

http://www.systemintensive.com/uk

Best,

Ken

Ken McCarthy and Lloyd Irvin

P.S. The thing I’ve always admired about martial arts (real martial arts) is that it’s the ultimate No BS discipline. You can’t fake your way into it. You can’t rip off someone else’s work and present it as your own. You’ve got to personally stand and deliver and you can’t coast on last year’s or even last week’s accomplishments.

Lloyd just turned 40 this year. I’m going to be 50 in September, but I can still take him (in my dreams!) LOL

But seriously, the greatest satisfaction from teaching Internet marketing (real teaching, not “guru” prancing and posturing) is all the System grads who go out and do amazing stuff with what they learn and the many like Lloyd, who are gracious enough to turn around and give back.

That’s why there’s 1001 “dog and pony” Internet seminars and a million and one “flash in the pan” gurus, but only one System Seminar.

You see, we actually TRAIN our students to accomplish great things and many do and with this formula our circle and knowledge base just gets bigger and bigger, year after year.

You know the difference

If you’ve been to a System Seminar, you know what I mean. If you haven’t been and you’re in Internet marketing for real, you’ve really been depriving yourself.

The UK Intensive in London, England this September 26 & 27th is a great opportunity for you to get involved with real world,  high level Internet marketing, the kind that;s only dreamed about by most Internet marketers.  We’re limiting the group to just 79 attendees to keep it manageable and well more the half of the seats have already been claimed.

Participants at the UK Intensive will not only get the live training, they’ll also get the complete recordings of last year’s UK Intensive featuring direct marketing legend Drayton Bird (we’re still working to digest all the wisdom he shared with us last year) Plus they’ll also get the complete DVDs of System 2009 in Chicago (which alone sell for over $1,495.00 US.)

I want smart people at this event. If you’re smart, join us. We’d love to have you add to the power of our Master Mind.

Details:

http://www.systemintensive.com/uk

He was kind enough to get up early one Saturday morning and drive in the pouring rain in his junk filled Mustang to speak at a conference I organized in San Francisco. (By all appearances, this may well have been the very first serious gathering focused on discussing the practicalities of web-based business.)

A lot of water has gone under the bridge since then.

Marc has created and sold TWO billion dollar plus companies and is working on his third – and opening a venture capital fund.

If you don’t know who Marc is, it’s simple.

Without him, there’d be no web as we know it.

Years back, a lot of people thought (and said out loud) that Marc had gotten “lucky” with Netscape.

These people obviously never spent time with him.

This is one whip smart dude and he’s proven it over and over since his so-called “dumb luck” breakthrough in the early 90s.

I’m guessing Marc is about 38 a now.

If you want to know what’s going on in the Internet business and in tech in general, give this hour long interview your full attention.

As Marc jokes, he’s often wrong, but rarely in doubt. The thing is he gets the big things right often enough that he’s very worth listening to.

Enjoy – this is a good one. (And if you have a lot of time and stamina you can follow that by watching the original 1994 seminar.)

November, 1994. San Francisco

Tom Leung who is product manager for Google’s Website Optimizer tool was kind enough to come to Chicago to System 2008 and walk us through this extremely powerful and relatively new testing tool.

It’s the same one Google uses in-house for its own testing – and it’s free.

One of our faculty members Sean D’Souza, who is a wizard of info marketing, happens to have been a professional cartoonist in an earlier career and drew some cartoons illustrating big points in Tom’s talk.

I’m thinking of making Tom’s entire talk at System 2008 available for free to everyone in the Internet marketing world. Since it’ll take an investment of time and money on my part, if you’re interested in this, definitely let me know by posting below.

Meanwhile, here are Sean’s System 2008 cartoons on Google’s blog: click here for the cartoons

For the next six years, there were less than a dozen people who were serious about teaching Internet marketers to what I call “bootstrap entrepreneurs.”

Now there are hundreds. Some good, some not so good.

An amazing number of these folks are System graduates. Some acknowledge their roots. Many don’t.

My biggest challenge today is to convey to “newbies” – and that includes many people who’ve been involved in the industry for years – that they’re really missing out if they’ve never experienced a System Seminar.

I’m gong to be fine whether people come to System 2008. We’ll sell out again this year, just as we have every year, but it bums me out a bit to think of all the good people who could be succeeding who are wasting their time on copycat crap peddled by rip off artists.

Anyway, here’s a short video I’m going to be using to give people who are new to the System who we are and how the System fits into the grand scheme of Internet marketing.

I’d appreciate it if you’d watch it – it takes two minutes – and comment and let me know if I’ve left anything important out.

And the Internet? It was for a handful of scientists and uber-geeks only.

Who made the difference? That’s easy. Tim Berners-Lee.

The Queen of England just awarded him the Order of Merit and though I don’t normally go in for all that “royal” stuff, this is a case where I’m glad the institution exists because clearly Berners-Lee’s contribution requires massive acknowledgement.

“I was just in the right place at the right time,” he’s been quoted as saying often about his invention. That may be true, but he was in the right place at the right time – and did something about it.

Berners-Lee’s goal wasn’t self-aggrandizement or to pile up a fortune with which to lord it over others. He saw a way to make an existing tool easier and more accessible to others and invested the considerable time, effort and energy needed to make it happen. He didn’t need to. His salary would have been the same whether he invented the World Wide Web or not.

Berners-Lee invented the World Wide Web, you ask?

Yes, lock, stock, and barrel.

Web pages, web sites, web servers, web browsers, HTML, hyper text transfer protocol (the “http” you see in every web address)…all Berners-Lee’s inventions.

Where would we be without the web today? I hate to imagine.
Well done Sir Tim and Hail Britainia.

I profoundly didn’t “get” the AOL-Time Warner merger and loudly listed the 1001 reasons why it was a disaster for Time Warner to anyone who’d listen. No one did. Including the New York Times, the Wall Street Journal and Fortune which all gushed over the union like a pre-adolesent girl over a pop star.

Late 1990s San Francisco felt to me like a party that had gone on way too long where people had had way too much to drink and folks were way too eagerly pairing up with people whom in the light of day they’d have second thoughts sharing an elevator with.

I sold every NASDAQ stock I had, shorted some I didn’t and bought what seemed at the time to be a “crazy” amount of gold. In turns out that the only crazy thing about the volume was how little it was. Had I been a little more “reckless” I’d be long done. I also physically moved myself from the glorious Bay Area to what was then considered a backwater, the Hudson Valley of New York. The value of the house I bought quadrupled in value in six years. It did seem like an awfully good price.

Today, I’m reading my favorite newspaper, the Financial Times and this headline caught my eye: “Jostling for space on the web’s next frontier.”

The article recounts recent deals in the Internet world:

• The ad group WPP bought 24/7 for $637 million
• Microsoft offered to buy Aquantive for $6 billion
• Goolge paid $3.1 billion for DoubleClick

And what new frontier are they buying into? Display ads.

I hate to burst anyone’s bubble, but not long ago display ads went by a different name: banners ads.

Having played an important role in the history of the banner ad, banner ads are close to my heart. (One of my students, former Hal Riney & Partners adman Rick Boyce was the guy responsible for selling the concept to corporate America. He got his own indoctrination into what we called “billboard ads” from a small workshop I put on in June of 1994.)

As fond as I am of banner ads, or display ads as they’re being called now, we learned something very important about them in the 1990s. For the most part, people tune them out.

What has changed since then?

Not much other than a new generation of people who somehow missed, slept through or didn’t read about the spectacular collapse of the banner ad model, believe that this “new” thing – the display ad – is where the future online action will be.

Really?

Here’s some illumination from someone who sells these dogs for a living, Mike Kelly, head of advertising for AOL:

“Marketers have gotten to the point where they understand that interactive advertsing works.

They are ready to ramp up their spending on the web, and this means a lot more spending on display ads.”

Let me translate:

“The shallow thinking posers who spend corporate America’s ad dollars have finally woken up to the fact their customers actually use the Internet.

And now that their peers are throwing buckets of money aimlessly at the thing in the hopes of appearing that they have a clue, everyone else feels comfortable doing it too.

In short, no one is going to lose their job spending millions on online display ads that don’t do squat.”

Will a ton of banner – I mean display – ads be sold to advertisers?

No doubt.

Does this represent some new frontier?

Very doubtful.

On the other hand, there are virtues to drinking Kool Aid.

Look at the prices these banner ad serving companies are selling for. Look at all the revenue Google et. al. will book as billions of dollars flee the collapsing television-newspaper industry and look desperately for someplace, any place, to go.

In fact, there’s a lot of money to be made in Kool Aid. Just make sure you’re the one selling it, not drinking it.

Onward to the future!

They laughed and they knew what I was talking about.

But maybe I don’t really know what Web 2.0 is. I wonder. Does anyone?

Whether we understand it all fully or not, people are inventing new ways to use the Internet. And this is in keeping with the way new mediums always evolve.

Would you believe it took decades after the telephone was invented for the idea of just picking up the phone and chatting with a friend to take root? And it was users, not the engineers, who made that happen.

That the original telegraph technology was visual (marks on a strip of paper) and that it took a 14 year old kid from Kentucky to discover that the human brain had the capacity to translate audio dots and dashes into words and sentences in real-time?

Yes, it’s engineers who invent new technology, but it’s us – users – who figure out how to make their inventions into everyday mediums for communication.

I confess that I have not been able to fully wrap my mind around Web 2.0, especially in terms of finding commercial applications for it. Maybe there are none. Maybe like private phone calls, Web 2.0 is not meant to be intruded upon by advertising.

I don’ t know. (How liberating it is to say that every now and then. “I don’t know.”)

But here’s a guy, who has clearly given it a lot of thought and given us all a lot to think about – and in just under five minutes. Beautiful.

A video by Michael Wesch, Assistant Professor of Cultural Anthropology at Kansas State University.

By the way, if anyone is going to sort out practical applications of Web 2.0 for business, I’m betting on these members of the System 2007 faculty:

• Dave Taylor – The grand old man (but he’s not really that old) of the Internet who graps the core culture of the Internet better than anyone I know
• Marc Harty – From Madison Avenue to SEO to Web 2.0
• Sherman Hu – Total immersion in the world of blogs

You can hear what these guys have to say about Web 2.0 as it applies to us, the business owners of the world, here:

Click here for System 2007 interviews with faculty