Web 2.0 Can Be Dangerous (Jakob Nielsen's Alertbox)
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While there's no single definition of the much-abused "Web 2.0" term, I'll look at four trends that are often considered its defining elements:
- "Rich" Internet Applications (RIA)
- Community features, social networks, and user-generated content
- Mashups (using other sites' services as a development platform)
- Advertising as the main or only business model
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Advertising-Funded Business Models: Bubble 2.0
The number of companies that chase the same advertising dollars as their only business model is a sure sign that we're at the peak of Bubble 2.0. It would be much more sustainable if companies aimed to create services that users valued enough to pay for.Right now, considerable advertising money is sloshing through the Web because most marketing managers remain clueless about how it works. They think that because search advertisements generate lots of business, other Web ads must work just as well. What a fallacy — brought on by ignorance of the basic Web user experience. People go to search engines when they're explicitly looking for a place to do business. This is why search engines profit from sucking up the work of content sites (where users exhibit strong banner blindness).
Marketing managers won't remain clueless forever. Sooner or later they'll discover that Web advertising offers almost no ROI. Only two forms of Web ads actually work: search ads and classified ads (such as eBay and real estate listings). A third type of Internet advertising that might work are video ads, because video is a linear media form (in contrast to nonlinear website navigation). At this point, we don't have enough user research about Internet video to say for sure.
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