The NY Times article which Ralph points to in the previous comment on this article is worth reading. Some quick thoughts:
-- As the volume of content on the Internet rockets, the key issue for bloggers who want to build a business around blogging is whether or not they can become a "category killer", ie. the must-go-to site on that topic. Both Michael and Rafat have achieved that -- Michael for coverage of Web 2.0 companies and Rafat for coverage of the media industry for insiders.
-- Other than the benefits of pooling tech and business resources, I'm not sure that Michael's idea of grouping together top bloggers will lead to greater success, as it would probably result in a product that is less focused (ie. less obviously a "category killer").
-- In the NYT article, Michael and Rafat disagree about how "edgy" the writing should be. I personally think there's room for different styles; the key issue is whether you're good enough to be a category killer, using whatever style comes naturally to you.
-- As a tech blogger, Michael competes with CNET. In the NYT article, Rafat says he competes with trade publications. My gut feeling is that Rafat's market is easier to compete in, because there are so many established sites and blogs about tech. (That, btw, is testimony to how talented Michael is - that he's stood out in such a crowded field.)
-- Building a business from blogs isn't easy, because there's so much more free content on the Internet now versus five years ago. (Look at the newspaper stocks, and ask yourself if you really want to become a journalist!) Most of the contributors to Seeking Alpha are writing in addition to their full time jobs because they enjoy it and they want to participate in a discussion with more exposure, and their articles have the effect of promoting their careers and their businesses. They're not trying to move into journalism as a livelihood.
-- Even the "category killer blog" model won't necessarily generate most of its revenue from advertising, because the audiences are extremely focused and valuable but of limited size. So it's not surprising that Michael and Rafat both have jobs boards and make money from conferences. I think we'll see the leading blogs move even more into those sorts of revenue generators in future.
I'd love to hear other people's thoughts on this. David
The Most Important Quote From Google's Conference Call [View article]
Vishesh, you're right that my point wasn't really focused on the business of building websites but about the underlying fact that Google wants to promote the growth of the web because it benefits from it. And building web sites may be higher-touch than its interactions with searchers and advertisers.
But it doesn't have to be high-touch -- think of Blogger, which is totally automated and has millions of users. Couldn't that be adapted for more commercially-oriented websites?
Dan, I'm grateful to have your perspective here -- thank you for contributing this. Quick question: are the comScore numbers reflective of a drop in any other area of CNET's traffic, for example Webshots or Download.com?
I'm really skeptical that a traditional media company would want to pay up for CNET. Look what Dow Jones just said about tech advertising in its conf call:
"Technology linage was down a little less than 1% in the third quarter on declines in personal computers, technology services and hardware advertising partially offset by gains in communications, office products and other B2B technology advertising."
And later:
"I think we are going to continue to see some pressure on tech in the fourth quarter. There are a couple of advertisers I'm not going to name by name, that this year have really had a big decline in their advertising, not just in us but in others, you mentioned the Microsoft Vista delay, that obviously has some impact on advertising.
I would say that we're seeing really good strength in some other categories like semiconductors. We've had very good success with that marketplace, front page units. We've got significant increases in spending in Q3 from advertisers like Intel, HP, Microsoft, Cisco, Boston Scientific, so we do think that we are going to be carrying some new product launches in Q4 hardware and software, but these probably won't be large enough to offset a couple of these other trends that I've mentioned in tech."
CNET's Traffic Collapse and TheStreet.com [View article]
I actually agree with many of the points you make, Jack. Becuase most of TSCM's business is subscription newsletters, and the accounting for them mandates that revenue is recognised gradually as the subscription progresses, TSCM's business over the next few quarters won't be impacted by short term factors. But a stagnation in traffic growth will decrease the number of new subscribers for paid products, so there is longer term risk. And the Street is pretty good at pricing-in long term earnings to a stock's price.
Can Blogs Beat CNET? [View article]
-- As the volume of content on the Internet rockets, the key issue for bloggers who want to build a business around blogging is whether or not they can become a "category killer", ie. the must-go-to site on that topic. Both Michael and Rafat have achieved that -- Michael for coverage of Web 2.0 companies and Rafat for coverage of the media industry for insiders.
-- Other than the benefits of pooling tech and business resources, I'm not sure that Michael's idea of grouping together top bloggers will lead to greater success, as it would probably result in a product that is less focused (ie. less obviously a "category killer").
-- In the NYT article, Michael and Rafat disagree about how "edgy" the writing should be. I personally think there's room for different styles; the key issue is whether you're good enough to be a category killer, using whatever style comes naturally to you.
-- As a tech blogger, Michael competes with CNET. In the NYT article, Rafat says he competes with trade publications. My gut feeling is that Rafat's market is easier to compete in, because there are so many established sites and blogs about tech. (That, btw, is testimony to how talented Michael is - that he's stood out in such a crowded field.)
-- Building a business from blogs isn't easy, because there's so much more free content on the Internet now versus five years ago. (Look at the newspaper stocks, and ask yourself if you really want to become a journalist!) Most of the contributors to Seeking Alpha are writing in addition to their full time jobs because they enjoy it and they want to participate in a discussion with more exposure, and their articles have the effect of promoting their careers and their businesses. They're not trying to move into journalism as a livelihood.
-- Even the "category killer blog" model won't necessarily generate most of its revenue from advertising, because the audiences are extremely focused and valuable but of limited size. So it's not surprising that Michael and Rafat both have jobs boards and make money from conferences. I think we'll see the leading blogs move even more into those sorts of revenue generators in future.
I'd love to hear other people's thoughts on this.
David
The Most Important Quote From Google's Conference Call [View article]
But it doesn't have to be high-touch -- think of Blogger, which is totally automated and has millions of users. Couldn't that be adapted for more commercially-oriented websites?
CNET, Traffic and the Blogosphere [View article]
Should CNET Be Sold - And To Whom? [View article]
"Technology linage was down a little less than 1% in the third quarter on declines in personal computers, technology services and hardware advertising partially offset by gains in communications, office products and other B2B technology advertising."
And later:
"I think we are going to continue to see some pressure on tech in the fourth quarter. There are a couple of advertisers I'm not going to name by name, that this year have really had a big decline in their advertising, not just in us but in others, you mentioned the Microsoft Vista delay, that obviously has some impact on advertising.
I would say that we're seeing really good strength in some other categories like semiconductors. We've had very good success with that marketplace, front page units. We've got significant increases in spending in Q3 from advertisers like Intel, HP, Microsoft, Cisco, Boston Scientific, so we do think that we are going to be carrying some new product launches in Q4 hardware and software, but these probably won't be large enough to offset a couple of these other trends that I've mentioned in tech."
CNET's Traffic Collapse and TheStreet.com [View article]
CNET's Traffic Collapse and TheStreet.com [View article]