The argument for the Twitter’s strategy is rooted in the idea of “network effects”, where the real value of the company is reaped once the whole world is onboard, and anyone who isn’t might as well be on Mars. Twitter wants it to be a necessity for everyone to be part of its matrix; like finally getting internet for the home to send and receive emails, or getting a telephone line to have phone conversations, or joining facebook just to use it as the modern day Yellow Pages. With that kind of power, viable business models would stream in very quickly — monetizing would not be difficult. Hence, Twitter is focused on growth and is not even tempted to enable advertising on their blogs.
Should new online publications think this way too? Should web magazines focus on growth first and sell ads later?
Well, yes and no. The “stickiness” of an online publication like Huffington Post, Techcrunch, or even the NYTimes is a lot less than a blogging platform, although the comments section and community based approach that a lot of these websites are moving into helps create loyalty. The stickiness matters because if people can leave (i.e. stop going back) to the website too fast and easily, then there is less reason to focus on purely growth initially.
The second question is whether creating a “critical mass” helps a publication. Advertising dollars, espacially for Google ads, is rather linear and scalable. This means if 10 views gets you 1 cent, you might as well put up the ad in the first place even with such a low readership. Having a higher tranche of readers do mean that you can sell to higher paying advertisers, and can negotiate for better rates. Having a larger regular group of readers also help in profiling, hence helping to sell ads.
It also boils down to whether advertisers prefer quality or quantity of hits. Do advertisers prefer a good returning group of readers, or would rather sacrifice repeated hits for a higher volume of hits. A preference for quality–which would also mean more accurate profiling of each impression–means there is more of a case for publications to build a critical mass upfront. Hmm…does this matter at all?
The Daily Beast just launched with no advertising. I think they are definitely working towards a respectable readership before a publication of their weight (Tina Brown, no less) would want to approach advertisers.
How different is a blogging platform, where readers come in aily to be updated, different from a web newspaper? What are the business implications?
For one, with blogs, one has the luxury of asking more questions than answering them.]]>
I tend to overthink. Because right then, I looked up and there were already firemen all over the office.
Thank God everything was alright!]]>
Philip Kor — Producer (i.e. champion of Google Docs, odd-job laborer)
Jason Chan — Videographer (i.e. the man with the cam)
Alvina Collardeau — Co-founder and Editor-in-Chief (i.e. the boss)
Zoe Woodbury — Features Editor (i.e. voicemail and Wordpress extraordinaire; “it’s relaxing”)
(missing from photo)
Kimmy Ratican — Writer/Producer (i.e. gets to meet famous people)
…and the other 95% of the empire.
But that’s just all big media news: what’s really happening on the grounds in Silicon Valley? Happy, jolly Google engineers are giving their engineering-labmates-turned-investment-banker friends a call: “Well, I hope investment banking has been ‘more challenging’, ‘multi-faceted’, ‘real world’, and ‘human facing’ all these years. Really hoped you saved some of your bonus for the months ahead. By the way, don’t bother dropping your resume with us: we require at least 3-5 years of coding experience.”]]>
Things have been ramping up quite a bit here OnTheInside — we have added staff, scheduled a packed pipeline of personalities, and been exploring partnerships with big name publishers.
But who cares about all that magazine stuff, right? The most important development has got to be the relaunch of this blog: Here to bring you the Insides of OnTheInside! (…plus some tech news, and a little New York).
To whet your appetite, here are some big names we would be featuring in the coming weeks. Look out for their full interviews on this blog.
Giorgio De Luca, of Dean & DeLuca fame who, with business partner Joel Dean, single-handedly imagined the gourmet supermarket industry with the opening of their first SoHo store in 1977, which eventually turned into a hundred million dollar business. They understood New Yorkers’ better taste for fine grocery way before subsequent faux-organic supermarket chains, with their tacky decor that says Disneyland more than farmer’s market, popped up all over the city over the past decade.
Carmen del’Orifice, longest serving model at Ford Agency, who in her 70s, still models for clients like Rolex. She has been modelling since she was 14 and carries herself with an air of untouchable elegance and grace. Yet, she comes across as a most warm and humble person during our interview with her. Carmen had some riveting stories to tell of her childhood, and I cannot wait for her interview to be published (also because I was the one that had to transcribe the 3 hour long interview).
Jimmy Wales, founder of Wikipedia. Visionary and evangelist for “free knowledge”, Jimbo, as people call him, currently owns and runs the non-profit company Wikia, a website that hosts a variety of individual wikis on different subjects. Constantly fighting the controversy surrounding the reliability and use of Wikipedia, Jimmy takes a breather with us, as he tells us about his favorite places to hang out in New York. I’m curious: Do you think he ever goes to the New York Public Library?]]>