Web 3.0: The Mobile Era
“Whether they’re a newer mobile-centric startup like a Path or an existing giant like Facebook, the key will be monetizing n a mobile world. Monetizing in mobile will likely evolve in new directions relative to what we’ve seen in the PC-web. Specifically: monetizing in Mobile is about getting even more real and concrete in the value delivered to customers.
Here’s why. In Web 1.0, Google achieved supernova momentum when it introduced its Cost-Per-Click ad model. With a dominatingly high quality search engine for users, Google gained share on search, and in effect knew what people were interested in. This was a break-through for advertisers in terms of measurability. Advertisers could escape the Mad Men world of spending on TV, print, OOH, and banner ads with their fuzzy efficacy and measurability. With Google, advertisers now could place ads in front of people searching on relevant terms. A huge step in terms of measurability, Google’s model had the added benefit of only charging when a user clicked on a specific ad. All combined to deliver a vastly more measurable and as such valuable approach to spending ad dollars.
Web 2.0 ushered in the social wave. Facebook now is showing ads of stuff we might like based on the interests we’ve indicated or based on referrals from friends. This embraces and extends much of the Google model, but provides potentially even more. Facebook knows what we like day to day (Graf Ice Skates, Breaking Bad, Crossfit for me), and what our friends like. Add to this the tremendously detailed demographic data that its users have willingly provided, and the opportunities for advertisers are pretty profound. While Facebook will continue to optimize its appraoch to ads, there should be little question that its current core business of ads is going to continue to grow.
With Mobile Web 3.0, the user experience opens the door for another level of innovation in advertising and promotion. Now technology services have the ability to leverage not just the social graph data from Facebook, but even more real-time / real-world information. Your current location, weather, traffic, local merchants other friends nearby, how often you’ve been to this specific store or location are available (or will be soon). And this in turn provides a whole new level of commerce opportunities for potential advertisers. Mobile brings advertisers and users closer to being able to close a transaction. It’s real-world commerce. Which leads to the question: Why pay for a click when you can get an actual customer? That’s the promise of mobile for advertisers, brands and merchants. The opportunity is huge: both in pure dollar size opportunity and for disruption. The internet advertising models of selling clicks to advertisers will need to evolve.”
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