Thursday, May 31. 2007

Where's (2.0) the Money?

Seeking Alpha's Henry Blodget was at Where. He notes how lots of stuff is cool, but wonders about how money is being made. He notes for example, "The CEO of Platial, for example, Di-Ann Eisnor, raved about how much money there was to be made in made in mash-ups, but offered exactly zero details." I have to say if she had such details, why share them?

On the other hand, it does feel like we've been buzzing about new Web mapping technology for long enough for solid business models to emerge. All I keep hearing is "advertising" and "local search" aka advertising. What about subscriptions? (Motion-based from Garmin has one, for example, for "more features".) Or, consider that MapQuest's new API (Flash via ActionScript 3.0) is not free.

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Without a physical product (i.e. Garmin) people seem unwilling to pay for a service on the internet, especially a service that is access to resources on a website. There is very little stickyness to a website, websites aren't that visually appealing or immersive. Advertising is the only realistic way to monetize such services, but that is a pretty weak and unpredictable revenue source.

#1 Matt Giger (Link) on 2007-05-31 10:09 (Reply)

I've been preaching the market potential for years, and what it's building up to - Mobile, aka Dot-Com 2.0

Wireless. Mobile. Getting away from the desktop. True functionality for the end-user in the daily living space. Mapping, GIS, are the only true functional utilities that can springboard a wave of innovation for mobile functionality in the initial phase of that initiative - which can, and will enhance people's lives through the use of technology.

Computers get smaller, and smarter.

#2 Daniel (Link) on 2007-05-31 13:37 (Reply)

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