Premium Services Fastest Way To Web Site Profitability

April 16, 2009

The thinking among Web entrepreneurs is changing. Online advertising is out and premium services are in.

With more newspapers and news organizations talking about imposing online subscription fees, one might think the Web is headed toward a future of private clubs and walled enclaves.

Online advertising is losing favor, but subscriptions dont appear to be the answer

Online advertising is losing favor, but subscriptions don't appear to be the answer

But most entrepreneurs appear to believe a combination of free and for-fee services might be the key to their digital futures.

This thinking was reflected in a survey of attendees at the recent Web 2.0 Expo in San Francisco. The study, commissioned by Yola, found that 78 percent of respondents believed the combination would help them weather the downturn.

In contrast, 42 percent believed a subscription model would be the fastest way to profitability.

This change in thinking could still alter the freewheeling, everything-for-free environment of the Internet. And it could prompt a shift away from online advertising.

The same survey found that only 39 percent of people believed hosted ads would bring profitability. And only 8 percent said online auction sites would grow this year.

The Internet appears poised for another key shift in thinking. It is time to noodle on that.


[Web 2.0 Expo] Sensors Will Drive The Next Web Revolution, O’Reilly Reflects

April 2, 2009

The Web 2.0 was about harnessing the collective intelligence of users. Web 3.0 will about taking advantage of sensor data, Tim OReilly predicts

The Web 2.0 was about harnessing the collective intelligence of users. The next Web will about taking advantage of sensor data, Tim O'Reilly predicts

In his keynote at the Web 2.0 Expo conference, Tim O’Reilly – who helped coined the term “Web 2.0″ – reflected on where the Web industry is going next.

But before that, he reminded his audience of the origins of Web 2.0.

“Web 2.0 was never intended to be a version number. It was really a reflection of what happened after the dotcom bust. There were some companies, some projects that seemed to survive when others were flatten. Why was it?” O’Reilly pondered.

For O’Reilly, the companies that survived the Internet bubble learned how to use the web as a platform. “And in particular they understood that the heart of that was to harness the collective intelligence, that is to get their users to add value to what they were doing.”

So what’s next? What is Web 3.0? The semantic Web, virtual reality, the social Web, the mobile Web?
“I think it’s all of these things,” responds O’Reilly. “But it’s more than that. If you think of the Web as a newborn baby, and in particular of Web 2.0 as a maturation of that baby, we have to ask ourselves, is the Web getting any smarter?”

O’Reilly talked of “information shadows”, “electronic sensors coordination”, and statically extracting the “meaning” hidden in all the data that is being collected, gathered.

In a nutshell, for this Internet visionary, Web applications are going to be more and more driven by sensors and not by people typing on keyboards. A major shift from Web 2.0 applications today that heavily rely on user inputs.

There is power in less

Another of O’Reilly’s theme was how to apply Moore’s Law to the world’s hard problems.

“In the technology industry, we take for granted that we get more each year for less. But it doesn’t work that way in the world. The whole basis of our economy is that more will be spent, that things will be bigger, and cost more, and economy will grow.”

Part of the power that we have, is to take these techniques that we’ve developed in the consumer Internet and start to apply them to big hard problems, added O’Reilly.


Follow

Get every new post delivered to your Inbox.

Join 31 other followers