Web 3.0 snippets – I

We have entered the third business plan of the web.

Web 1.0 was about aggregating online audiences. The currency was eye balls measured in page views. This business was banner ads and ecommerce.

Web 2.0 was the search economy which enabled many more businesses to participate through sem and seo. The currency was clicks and while it was higher margin, most of that went to the search companies, primarily goog.

Web 3.0 is about monetizing this massive web audience through users paying for mostly digital goods and services. The product will be a service or at least ongoing relationship. Distribution could be through Apps or even daily emails. The currency will be DAUs (daily active users). This will be higher margin and fuel an exponentially greater number of companies.

Web 3.0 businesses may range from games and virtual goods (like zynga) to private sales like my wife’s http://www.onekingslane.com/join . It will spawn many new online industries with creative entrepreneurs constantly testing what digital goods and services users will be willing to pay for.

Web 3.0 businesses will be measured in $$/pixel/minute. This is a throw back to hsn and qvc. These home shopping services proliferated because they could better monetize local cable screen time which couldn’t be sold as it wasn’t measurable.

Web 3.0 services will be ttly metric driven. The best will combine intuition and data to rapidly iterate and drive reach, retention and revenue.

Major distribution platforms from social nets like fb and myspace to portals like yhoo and goog should all be massive beneficiaries. Key will be their ability to attract entrepreneurs and enable them to effectively test their services.

If TCI has been able to do this with its channel space all of cable would be far more valuable and relevant today.

Msg to big media — open api your assets. Invite the world to harvest your land.

3 thoughts on “Web 3.0 snippets – I

  1. Absolutely agree on this post, but also need to remark that, if Web 3.0 is about microtransactions, here in China (and more generally, in Asia) it has arrived about 4-5 years ago 🙂
    Tencent is a 1B USD business now, 70% of which comes from sales of digital goods and services to their web audience (more than 400M subscribers in China). Every game company in Asia has adopted the free-to-play item-based model years ago, and turned it into a 3B+ USD business. And lots of Western companies (us included) are here turning known game franchises into free-to-play products, and creating new IP.
    Surely the popularization of the model in the West is enriching and bringing new interpretations to the model (for example, social is relatively new in China and not yet exploited fully, and the same can be said for viral growth models). Additionally, in the West web is undoubtedly the way to go, while in Asia for several reasons (habits, predominance of Internet cafes etc) both Web and client-based microtransaction games thrive. That said, I think the whole sector owes a lot to the Asian experience, and can still learn a lot from it.
    Also, absolutely agree with your invitation to open API assets… I made a guest blog post arguing for opening up of casual games platforms a few weeks ago. Here it is: http://www.casualgaming.biz/blog/209/The-case-for-open-casual-games-platforms
    Cheers,
    Giordano

  2. Are you redefining the definitions of Web 1, 2 & 3.0? Not sure I buy Web 3.0 is just about microtransactions in the long tail (think that’s what you’re saying) but I could see how that would be one characteristic of it. And what happened to the idea of the Semantic Web? Are we getting closer via Bing, Wolfram Alpha & Google Squared? Still seems like years away.
    I don’t believe we’ve mastered Web2.0, and although we tire of its label, think we should stick it out until a real next-next thing comes along worthy of the 3.0 handle–even if it’s not “the semantic web” which was previously theorized.

  3. Hei Silva
    I think Mark is describing monitization method of web 3.0 versus technical definition of web 3.0 , surely web 3.0 is about semantics web technically speaking, but Mark is describing his idea as to how to monitize this to business model
    hei mark sure i agree with you with web 3.0 monitization i think it is a great idea
    but question:
    if “Web 3.0 services will be ttly metric driven. The best will combine intuition and data to rapidly iterate and drive reach, retention and revenue.”
    like you said, don’t you think, Fred Richfield book Customer Loyalty , using his methodology will help to identify good customer retention and drive revenue?
    I think it would be though to see the prevailing trend of the micro-transaction and keeping track gazillion of customer in action without properly indentifying what would be their primary satisfaction is to the service?

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