Sunday, July 23, 2006

Gawker splits

Gawker Media, Nick Denton's blog empire, is terminating its traffic deal with Yahoo! Nick says:
The bald truth is that the deal, which we announced in November, garnered way more attention than we expected, but less traffic. A few new readers probably discovered Gawker, or one of the other four sites that we syndicated to Yahoo. I doubt many of them stayed. Yahoo has a mass audience; Gawker appeals to a peculiarly coastal, geeky and freaky demographic. And these people are more likely to come to our sites through word of mouth, or blog links, or search engine results, or Digg, not because of a traditional content syndication deal.

Jeff Jarvis has his own take on events. He says Yahoo! in trying to be a portal is more interested in locking people into its site than helping them find what they want elsewhere.
Contrast this with Google, which does still try to get you in and out quickly. It makes a fortune by putting targeted ads on many of the sites it sends you to. Thus its potential is unlimited, for the more content there is, the more Google has to organize, the more we need Google to find what we want, the more its ads can appear everywhere, and the more it earns. Yet Google still satisfies both traditional roles of the old networks in the content industry: It takes in money by aggregating audiences for advertisers, while it also pays out money to support content creators. Google is network 2.0.
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