Does the internet need a border fence to be profitable?

April 28, 2009 at 1:27 am 2 comments

border-fence

Brad Stone and Miguel Helft write in today’s New York Times that the exponential growth of internet usage in developing countries is bleeding the profit from many web-based companies. What’s happening is very simple: People in places like Turkey, Indonesia and India are spending extraordinary amounts of time on sites like YouTube and Facebook–far more than the average consumer in North America, Europe and Japan. They’re sucking up a tremendous amount of bandwidth. The problem with this is that thus far advertisers has placed little to no value on the eyeballs popular sites are attracting in the developing world. If these foreign consumers can’t or won’t buy their products, they don’t want to pay for reaching them.

As a result, the big online players have to ask themselves if growth that cannot be monetized is something they really want. It’s not out of the question that some of the most popular sites on the web will become restricted to residents of certain countries. Though this seems a betrayal of the egalitarian ethos of the internet, failing to make money is a betrayal of the reason the companies exist in the first place.

Advertisements

Entry filed under: Advertising and Marketing. Tags: , , , .

The mind-control helmet from Japan – Coming to you soon in a stylish trucker hat that’s guaranteed to wow the ladies The death of direct mail – or at least of the organization that delivers it

2 Comments Add your own

  • 1. Kelly  |  April 28, 2009 at 10:37 pm

    very interesting Scott!

  • 2. scottj1898  |  April 29, 2009 at 10:13 am

    Glad to be of service, Ms. McCullough.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Feeds


%d bloggers like this: