Fox buys Myspace. Google buys Youtube, Doubleclick, and many more companies. Microsoft wants Yahoo. AOL picks up the crumbs ;-) (Internet Giants Buy...) Is the Internet consolidating or fragmenting?
Anecdotal reports suggest that even Top 100 publishers sell only 40% of inventory through direct means. This problem is well-illustrated by the diparity between page views and revenues: 30-40% of total Internet page views can be attributed to the 10 most trafficked domains, while ad dollars for the top 10 largest online publishers tracked by the Interactive Advertising Bureau account for approximately 70% of industry revenues. This concentration at the top is unlikely to abate in the near term. Ad networks offer one way to "spread the wealth," at the same time positioning themselves to generate revenue growth in excess of the broader market.
The top 100 includes global brands like Yahoo, Google, Fox, Microsoft, New York Times, and Time Warner. The bottom millions include most newspapers, vertical and B2B magazines, 100 million bloggers, and emerging Internet only brands from around the globe.
Is this the current trend for the Internet?
Trends toward Fragmentation
- Bloggers produce 1.6 million posts per day; overwhelming the output from the top 100 sites. Photo and video uploads also overwhelm the output by the staff of the top 100.
- Social networks, games, and video sharing taking mindshare away from search, email, and legacy uses.
- Facebook and LinkedIn have out-performed Google's Orkut, Yahoo's 360, and Microsoft's Spaces. Facebook Apps has a huge lead ove Googe's OpenSocial consortium.
- Thousands of new companies have been funded to attack digital media. Facebook Apps decrease the capital needed and reduce marketing costs to nil, for many ventures. Hundreds of start-ups have traction with millions of users.
- In-game, in-video, and in-widget advertising takes ad revenue share from the top 100.
- Google is losing brand publishers to Quigo. Quigo is willing to allow publishers to brand text ads and sell their own inventory.
Can iMedia companies match overall growth from just internal projects? Will new companies continue to out-perform legacy companies? Will iMedia companies continue to buy to maintain global share?
Can the industry keep up to accomodate the changing Internet?
Counting the Streams in a New Media Age - Dec 17, 2007
Media distribution is becoming fragmented much quicker than the currency can