Facebook applications don’t really do anything special yet. Neither, for that matter, do Facebook’s ads. But that’s OK, Facebook COO Sheryl Sandberg insisted yesterday at the D6 conference. Some of the applications, like Slide’s SuperPoke, are really popular. Just like Elvis, she says.The comparison fails on two counts.
Prices in the online advertising’s world bargain bin are cratering. PubMatic, a consultancy which helps Web-site owners shop for the highest-paying ads, says that average rates for its largest publishers have dropped from $0.38 per thousand page views to $0.18. Some fret that this is the sign of an economic slowdown. I doubt it. More likely, it’s a reflection of the glut of inventory available, and the failure of an ad-selling business model.
Jerry Yang’s spin campaign about why the Microsoft bid fell through is transparent. He’s not trying to cajole Steve Ballmer back to the negotiating table; he’s trying to cover his rear and appease indignant shareholders. The only reason he’s so open about accepting a new bid from Microsoft, I think, is that he’s not expecting another one to come.
Google’s top executives desperately want to convince Wall Street that it’s on the verge of cracking the $70 billion television-advertising business–automating it, rationalizing it and ruling it, as it has done with the considerably smaller search-advertising market. They’ve even hired an NBC executive, Michael Steib, to sell broadcasters on the idea. The only problem: It will never work, as Google’s own documentation shows. Google’s triumph in search is a product of its skillful use of data. By analyzing what Web searchers click on and what advertisers say they’ll pay, it’s able to continuously refine the ads it displays to yield the most clicks for advertisers and the most profits for itself.
Ning founder Marc Andreessen is already on the record about Microsoft’s proposed takeover of Yahoo: He thinks it will likely go through, and turn out to be a good deal. It’s a remarkably sanguine take for someone who saw Netscape bought and destroyed by AOL. In a thorough analysis for which he dragooned two corporate lawyers, Andreessen elaborates: Yahoo has few defenses, aside from a poison pill, and Microsoft will likely succeed. For all its thoroughness, the analysis is less interesting for what it says about Microsoft-Yahoo than for what it says about Andreessen.
Jordan Golson can’t be happy: Nick Denton has cut the amount of money he gets per thousand page views to $6.50 from $9.75. That’s a 33% pay cut, on a per-page-view basis. What about on an absolute basis?
Well, the page-view rate is set on the basis of the previous quarter’s page views. Total Q4 page views were 9,132,723, while Q1 page views rose 34% to 12,234,604 . The 33% cut matches the 34% rise in page views, right? Er, no.
Viacom continues to pursue a $1 billion lawsuit against Google’s YouTube for allowing video piracy. On Viacom’s Comedy Central, South Park creators Trey Parker and Matt Stone aren’t helping their corporate parent’s legal case. In last night’s episode, Stan, Kyle, Cartman, and Kenny asked themselves “How Do We Make Money on the Internet?” and predictably, [...]
“Jericho,” CBS’s excellent postapocalyptic drama set in rural Kansas has been canceled. Again. “Jericho” drew a large following among the tech demo. Besides the obvious sci-fi draw, Jericho explored themes of government intervention and self-sufficiency, which are passionate topics among the more tinfoil-hat Libertarians of the Web. But shows that please Netizens aren’t moneymakers.
A few weeks ago, we wrote a story about humorous headline aggregator Fark.com. That story was then submitted to Digg. Partially as a joke and partially to see what would happen, Fark.com founder Drew Curtis linked to the Digg post, rather than to the original story.
By sending thousands of his readers to the Digg page, Curtis singlehandedly pushed the story to Digg’s homepage. Success! Instant traffic and a new grill for me. So, is there any way Digg can account for this? Not easily. It’s difficult to tell “authentic” Diggs from “gamed” Diggs, when you have thousands of readers showing up at a page out of the blue.
I agree with the popular take on Sarah Lacy’s Mark Zuckerberg interview at SXSW to this degree: The audience was revolting. Lacy threw an unbecomingly petulant tantrum on stage. But the Twitter reaction was equally self-indulgent. The debates over her performance obscured the man who should have been under the microscope: Zuckerberg. As a speaker, Facebook’s CEO is trying to model himself after Steve Jobs. He’s gotten help from Bill Clinton’s former speaking coach. But so far, all he’s learned is the fine art of saying nothing.
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