Re:The $3B+ Exit Tumblr Could Have Had
by 0majors on Sunday May 19, 2013 @07:36AM
(#5732588)
Having worked in both media and creative agencies I can't agree with the potential revenue analysis in the article.
User Generated Content, as many here have pointed out, is not valuable and often is indeed toxic for big brands. The young audience surfing cat pictures is also not valuable. What products will the advertisers sell to them? Games, some fashion, fizzy drinks but then what?
Lastly, non targeted audience is also less valuable for obvious reasons. This is why they are looking at ~ $0.75 CPM but LinkedIn campaigns start at $1.50 and go only up from there.
Successfully monetizing anonymous teenagers wasting time on the internet is something nobody has managed to do so far. Ask Digg.com
User Generated Content, as many here have pointed out, is not valuable and often is indeed toxic for big brands. The young audience surfing cat pictures is also not valuable. What products will the advertisers sell to them? Games, some fashion, fizzy drinks but then what?
Lastly, non targeted audience is also less valuable for obvious reasons. This is why they are looking at ~ $0.75 CPM but LinkedIn campaigns start at $1.50 and go only up from there.
Successfully monetizing anonymous teenagers wasting time on the internet is something nobody has managed to do so far. Ask Digg.com