Display advertising was a flawed compromise from the start. Users tolerated intrusive banners (and even the dreaded pop-up) while publishers and advertisers pretended that dismal click-through rates were acceptable. That fragile ecosystem is now collapsing.

Why display ads are failing faster than ever:

• AI chatbots are extracting and delivering information without users ever visiting a site
• Ad blockers are now mainstream, with adoption rates exceeding 40% among key demographics
• Revenue from banner ads has declined annually since 2021
• Attention spans continue to shrink

The fundamental model of monetizing attention through interruptive advertising never put the user’s needs first.

I’ve studied media companies successfully navigating this shift, and they’re pursuing three core alternatives:

• Community value: Brands like Reddit, Letterboxd, and Fandom have built models around specialized communities that thrive on interaction, not just content consumption
• Functionality value: Tools and interactive experiences (fantasy leagues, shopping companions, personalized financial calculators) that can’t be replicated in a chat interface
• Experience value: Premium video, immersive storytelling, and curated content journeys that deliver more than just information

The companies that are winning today are not selling eyeballs to advertisers. They are selling genuine value to users who will pay either directly or through their loyalty.

Are you still clinging to outdated monetization methods? What’s stopping you from building something more valuable to your users and more defensible from AI?