February 11, 2008

Does advertising scale?

Google = search a.k.a. direct marketing for the web a.k.a. Yellow Pages 2.0. Amazon = retail. Ebay = transaction fees. Paypal = transaction fees. InteractiveCorp = retail/memberships/Yellow Pages 2.0. Yahoo = advertising/Yellow Pages 2.0. AOL = advertising/Yellow Pages 2.0/subscriptions (ISP). MSN = advertising/subscriptions (ISP).

I just cannot fully let go that advertising, in the traditional media sense a.k.a. not direct marketing, doesn't seem to be the dominant business model among the big, revenue-wise, Internet companies.

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