It seems a long, long time ago that we were introduced to “business models” for generating content on the web. The mantra was to drive traffic to your site and then capitalize on that traffic with ad revenue. Lots and lots of folks tried to do that and I would argue that the results were less than spectacular.
So if we now realize that not everyone can build an ad driven content creation web business, where are we all headed? The answer is, as far as I can tell, we don’t know. We don’t know because we do not have alternative business models.
At the same time, there have been a few steps forward in our thinking. We have started to realize, for example, that the web is incredibly fragmented and likely to remain that way. Web users take in content only in those areas that they are most interested in — and actively try to block all else —which blinds them to a vast amount of content that is being generated. As a result, the more enlightened thinking is to work within those fragments, rather than to build huge generic traffic generators. Google, Facebook etc. have already won that war.
Galore media company is an example of ~a company building its business model on this way of thinking. Galore focuses its attention on a particular demographic — young women from 16 to 24. And Galore’s value added is to build excitement within that target group for products and services that firms are offering. Not with ads. But with other tools.
My best guess is that we will see more media companies like Galore — facilitating connections between target groups and providers of goods and services for that group. And as these media companies gain traction, they will start diversifying by offering new types of services that merge web and real world events.
They key point is that they work within a fragmented rather than unifying wen model.