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Internet Trends for Investors

January 10th, 2005 · No Comments

Seeking Alpha discusses four trends:

Trend 1: Web advertising becomes really useful
Trend 2: Web sites become progressively easier and cheaper to build
Trend 3: Syndication and filtering dramatically improve web publishing and information dissemination
Trend 4: Search continues to improve and grow in significance

A follow-up piece suggests that the web will bcome more fragmented and transparent.

1. Easier and cheaper web publishing makes it possible for individuals and small companies to establish niche web sites.
2. Contextually relevant advertising makes it possible for small Web publishers to support their sites with advertising relevant to their specific niche.
3. Improved search then makes it easier for web users to discover those narrowly-targeted sites.
4. RSS and mark-up languages then make it easier for people to become repeat users of those sites.

In other words: the four trends together fuel the rise of the small, narrowly-focused Web site.

It also means that:

Implication 1: Fragmentation will reduce the dominance of the information portals.

Implication 2: Search engines will erode customer loyalty and the value of brands.

Implication 3: Information transparency will benefit the companies with the lowest expense structures or which add the highest value.

Implication 4: Unique content and exclusive transactional relationships will become more valuable.

Tags: General

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