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February 27, 2008

Free!

Free_2 Chris Anderson's latest in Wired, "Free! Why $0.00 Is the Future of Business" is definitely worth your time.

From an opening anecdote about razor magnate King Gillette, Anderson outlines the economic and technical forces that have evolved to create the business ecosystem we all work within today:

"It's now clear that practically everything Web technology touches starts down the path to gratis, at least as far as we consumers are concerned. Storage now joins bandwidth (YouTube: free) and processing power (Google: free) in the race to the bottom. Basic economics tells us that in a competitive market, price falls to the marginal cost. There's never been a more competitive market than the Internet, and every day the marginal cost of digital information comes closer to nothing."

It got us thinking.

If, as Anderson puts it, "The moment a company's primary expenses become things based in silicon (i.e. digital advertising infrastructure), free becomes not just an option but the inevitable destination," we've all got a lot of soul searching to do.

Advertising won't go away. Nor will it become entirely free to create or distribute.

The lesson here is to think differently about what advertising does, or is supposed to do. And to constantly evaluate our roles within this mutating system. Then be open to unusual thinking as it reveals itself.

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