Buuble Bubble everywhere.
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Rob and Jonty are not sure if Google Ecosystem (Google AdSense) can sustain more Web 2.0 startups. Scoble finds that there are simply too many companies chasing too few users. Kiko has shaken a few many pundits predicting the burst is near.
My 2.0 cents
Every startup is definitely not going to strike gold, but is that any different from the offline business world. The entry level in a Web 2.0 has gone down; the market is expanding like never before. The Web 2.0 has gotten a lot many people from different countries, age groups, and all walks of society expressing themselves on Web 2.0. The Long Tails is growing, which gives plenty of room to Web 2.0 startups to squeeze in. The niche markets are becoming big enough to be targeted by anyone, and they are actually going to be most sought after markets, rather than a general one.
New Monetization means are coming up, Google AdSense definitely being the first one has more traction than anyone else does. Microsoft and Yahoo! seem like fools today for waiting so long before rolling out their AdSense like products. They never sensed the explosion of small publishers market. Any ways Google AdSense might not be a complete business model, but definitely a great platform to bring together publishers and advertisers together.
With the market expansion, more and more advertisers are hopping on the bandwagon and I don’t see people reducing online ad spend. It’s not Google AdSense supporting the small publishers or Web 2.0 Companies, it’s actually the other way round. Moreover, the reason I think Google AdSense can sustain any number of publishers is because it only pays to publishers who get number of people clicking on the ads. Besides, Google is not the only player in the market today, if you are able to get people hooked up to your product, the money will flow in.
Developers of Flicker, Digg or del.ici.ous, YouTube had never thought of such a success when they started developing their products. They started doing it as a hobby or part time. Most Web 2.0 companies don’t need VC Capital today, and are bootstrapping and once they are able to get that traction, they only go after funding.
I do agree companies that are launched with the only model to be acquired by someone, or to get VC funding only, are doomed to fail. However, is it any different from the Old Economy?
Is Web 2.0 a bigger bubble than any other brick & mortar business model?
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Comments
Yeah, over-relying on Adsense not sensible. But it gives a good way to get your bills paying. And once you get in the league of players where you can demand ads on CPM basis, you are definately going to get more.
While Online Ads not the only way to monetize your blog/site or anything else. Its helping small bloggers getting 1K+ vistors a day in many niches pay for coffee and burgers.