Twitter beat RSS; Facebook did blogs in; native apps won out over web apps… and with every turn, the web became less relevant.
Over the last few months, I’ve been trying to get a better understanding of what is happening with the concept of virtual worlds. Let me go into more details as to why I think this phenomenon has some real potentials. In this first entry in a series, I will explore the economic activity surrounding this phenomenon. Size of the market When talking about virtual worlds, I am focusing on the new space created by the gaming industry that allows to create online avatars and interact with other players in a fully immersive environment. From an economic standpoint, estimates range from around 100 millions to a high of US$1.5 billion a year. These are not insignificant numbers and they point to an emerging phenomenon and potentially the rise a new industry, with its own set of marketplaces, gathers, owners, creators, and marketers. Marketplaces To understand virtual worlds marketplace, one must first understand what si going on in those virtual worlds. When a player sets up an account, he’s given a basic set of skills. As he or she progresses and interacts with the virtual world and its denizens, the player gains more and more skills and goods. However, this type of…Read More
Following a recent article in Wired News about the viability of blogging as a revenue generating model, I started thinking about the value of archival material to a blogger. As readers of this site might have noticed when using the web interface, I am using the Google Ad service called AdSense. As I am not at freedom to reveal the terms of my contract with them or discuss specific, I’ll talk in general about online advertising programs. The first thing to take into account is that the model on using advertising in archives is one largely predicated on a long tail concept, whereas one can make more money from small increment over a long run than trying to score the big hit. In my case, this means trying to get a few good stories out on a regular basis, none of which is going to make lots of money on a single day but a few cents or a few dollars a day can add up to quite a nice payoff on a yearly basis. I believe that people who blog and develop a nice audience can see some of those results. Let’s take a hypothetical story of 1000 words.…Read More
Does Technorati present an accurate view of the world of blogs?