http://www.nytimes.com/2009/04/27/technology/start-ups/27global.html?_r=1
It blames developing countries adds to the server load of popular social networking and sharing websites, but doesn't contribute back (in terms of money)
Is that true?
Social networking & media sharing sites make money out of advertisements. And the most targeted geographic areas are North America and Europe. Above mentioned article states that ad revenue is good from these areas.
I wonder how, though. Does anybody click on web advertisements? I mean you know its an advertisement, right? Why would you click on it? I never see the right side of google search or gmail. Sometimes "ads by google" disguises as web content itself and it probably triggers some clicks by the visitor. But other than that how do the web page ads attract any user interest? Especially the text ads.
So, how is the web users different in developing countries so that these sites don't get anything in return? I guess it has to do with the avg age of the users. In NA & Europe, there are quite a lot of middle aged and aged internet users. But in world #3, most of the net users are in 20s. And they're smart enough to avoid ads. Many of my friends have software such as adblock installed on their browsers to "clean up" the web page before it comes to them.
Well, then how do you make money here out of ads? I don't know, but I'm sure you can. You guys must check the multimillion dollar advertising program called IPL (Indian Premier League). They've succeeded in making money out of advertisements (directly & indirectly). And that's hell lot of money.
To conclude, avoiding developing world is not the way to go for internet services. But, understand the culture differences, demography and tailor your business model to fit this space. All the best in your business.
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6 comments:
I am sure you must hv meant the heading to be "Internet without World #3" instead of "Word #3".
Quite misleading, you see :)
And yeah, acc to articles, videos and pics for World #3 are made such a way that they use lesser band width etc.. which I think is a good decision, rather than block out the entire service here.
@Soorya: Corrected
Good job... I think you need to shift your focus into marketing from software development... Who knows??? We may have the next Kotler from India... :D
The way I see it is, companies pay advertising sites based on (at least) 2 measures.
1. Adv display rate.
2. Click through rate.
First will be a bulk payment for displaying the adv, 'say show this adv to 1000 users (every week) who look for this set of words'.
Second will be based on the clicks which reach the target site from the adv. These are the successful advertisements and hence will naturally command a higher premium. The more the click through rate, the more will be advertising site's commission.
First part of this equation will be roughly same across all geographies. Second part will be skewed in favor of the developed countries, as you have mentioned in your post. This might constitute a major part of the advertisement site's income as mentioned in the article.
An irony of this whole thing is that most often these advs are targeted at the developed country net users.
@Geo : ellaam manasilaayi.
Wah wah wah!!
ithaanu kaaryangal okke simple aayi ezhuthiyaalulla oru preshnam. kurachu differentiation-um integration-um koodi mix cheythu ezhuthandathaarunnu.
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