Wednesday, July 26, 2006
Can Web 2.0 survive for more ?
Are more and more Web 2.0 companies / websites dragging the industry towards another burst?
I get more and more worried now when I see more Web 2.0 companies doing the same mistakes of the web 1.0 like, doing crazy things (like paying users to add video to their site, paying users to use their sites) to generate more page views or eye balls and there by placing more advertisements and generating more revenues from them and most importantly getting funded with crazy bunch of amounts.
I am not saying innovation/knowledge is not worth for the amount of funding, but I am saying about inflation of the valuations.
The main debatable thing is that, most of the companies are dependent on their page views / advertisements for their survival. Though Google transformed a lot in the online advertisement industry, running a site only on advertisements is a very bad business plan. It could be the case for some of the content sites. But I don't think relying on the advertisement amounts only is a good deal to bet on.
The reason I am skeptical about the online ads is that, when I go to any websites or blogs to read their contents, I don't even look into what Google is displaying in their AdSense bar. I believe Google has to do something innovative to make sure they are properly serving the ads and in a new way to get the user attention. And also some sites just fill up their pages with full of Google ads with a small (sometimes even no content) at the center. Google should also make sure they are not overloading the same page with too much of ads though they might be placed in different corners of the same page.
What are your comments ?
I get more and more worried now when I see more Web 2.0 companies doing the same mistakes of the web 1.0 like, doing crazy things (like paying users to add video to their site, paying users to use their sites) to generate more page views or eye balls and there by placing more advertisements and generating more revenues from them and most importantly getting funded with crazy bunch of amounts.
I am not saying innovation/knowledge is not worth for the amount of funding, but I am saying about inflation of the valuations.
The main debatable thing is that, most of the companies are dependent on their page views / advertisements for their survival. Though Google transformed a lot in the online advertisement industry, running a site only on advertisements is a very bad business plan. It could be the case for some of the content sites. But I don't think relying on the advertisement amounts only is a good deal to bet on.
The reason I am skeptical about the online ads is that, when I go to any websites or blogs to read their contents, I don't even look into what Google is displaying in their AdSense bar. I believe Google has to do something innovative to make sure they are properly serving the ads and in a new way to get the user attention. And also some sites just fill up their pages with full of Google ads with a small (sometimes even no content) at the center. Google should also make sure they are not overloading the same page with too much of ads though they might be placed in different corners of the same page.
What are your comments ?
