Andrew Orlowski wrote :
> Indeed - maybe they're just hopeless at business. Welcome to Web 2.0...
I find it suprising no-one has called out that the Emperor is naked.
Google ads - irrelevant text link spam tacked onto someone elses content are worthless flotsam and jetsam of the web 2.0.
Hello!? Sites like Youtube, blogger, dailymotion, twitter, facebook - simply don't have a proven workable business model.
Who's great idea was it that a legacy advertising scam developed for broadcast and print - ie we fund TV soap opera's by wrapping them in car and floor/bog cleaner ads - would work online? They must be laughing hard at the analysts queuing up to place hundred million dollar valuations and up against these websites.
Have you noticed how desperate those pen-us pill ads / sux spray / herbal viagra ads appearing all over facebook look - the kind of junk in the classifieds at the back of a tabloid newspaper . Zuckerman has finally realised that he cant pay the bills and is being forced to flog pointless ad real estate to all and any takers.
Content user generated sites should employ a subscription model for their services. I pay flickr each year and in return they provide me with storage, bandwidth and an ad free service to upload / view my photos. I'm happy to pay a nominal fee to upload my vids, music, links a high quality service that doesn't shove irrelevant and annoying advertising down my throat.
Its like a car rental firm saying that you don't actually pay to use their car because its got a huge cock painted in the side with the phone number of the local brothel.
Traditional paid listing / PR models do work online - Newspaper, magazine or brochure/directory websites that provide paid-for content which generates page impressions, click throughs, trackable leads and sales. Sadly as value propositions these are depreciated by the freetards who think that link spam == business empire.
Internet advertising banners / text links are essentially a worthless proposition - in the hubris of web2.0 they were allowed to defy the established rules that govern commerical gravity.
Same goes for the currently vogue russian doll model white labeled affiliate website schemes which are similarly flawed and worthless.
Hardly suprising that these business models are championed by the same generation of clueless business school execs and MBA analysts who thought that maximising short term profit by destroying good companies / teams though outsourcing etc was a good thing.