12.1.06: Yahoo smiles as Google folds Answers
By Richard Koman - December 1, 2006
Michael Arrington notes that the folding of Google Answers was a big win for Yahoo and for the Web 2.0 model. But it's also a milestone for Google in that it shows they're willing to kill off projects operating under the wrong concept.
Google Answers launched in 2002, at a time when the desire for cheap user generated content wasn’t valued much because the advertising market was in a slump - monetizing page views was much harder than it is today. They adopted a for-pay model, where experts received a fee for answering questions, and Google took a 25% cut. ...This is a case study in why all this “Web 2.0 stuff” actually has legs when applied properly. Google went for a direct revenue stream, a business model that made sense in 2002. Yahoo, launching much later, launched a free product and used the ideals of community participation to remove friction from the process and get out of the way of users. This incentivized use and has created a massive number of page views that Yahoo is now monetizing. The network effect kicked in big time.
Finally, the move shows that Google wants to see performance out of its projects - 20 percenters or not - and is willing to pull the plug on stuff that just doesn't work. Perhaps not a great sign for Google Video.
« Resistance is Futile: Diggrz: Lifestyles and Relationships | Main | 12.1.06: Subpoenas for AMD, Nvidia »
December 1, 2006 | Permalink | Comment | Category: | Subscribe to SVW
- Top Stories:
- Technology In The Service Of Humanity
- The Death Of The Search Algorithm? Techmeme Has Six Editors
- TEDxSF - Little TED Just Like The Big TED
- SNCR Research: Social Media IS Influencing Business Decisions
- What's Next? Beyond Real-Time...
- PearlTrees: A Novel Approach To Human Mapping Of The Internet
- MediaWatch Analysis Part II: Google Has More To Lose Than Murdoch
- MediaWatch Analysis: Murdoch Will Negotiate Payment For Access To Basket Of Content With GOOG et al
- WeekendWatcher: The Sheer Number Of Things Will Devalue Them
- ChipWatch - Where Will The Next Generation Of Engineers Come From?
- Public Healthcare Could Cut Startup Costs And Help Spur Innovation
- Is GOOG's $750m AdMob Buy Strategic Or Dumb? An alternate view...
Comments (3)
Well, I think that google has so many projects in the tube that they couldn't care less about 1 single failure...
Posted: February 27, 2007 1:16 AM
google answers met yahoo
Posted: September 4, 2007 1:31 PM
Yahoo always tried to match or lead on technology side with Google -- it is its misfortune since they have denied money to Google in early days that every move from them give advantage to Google ....
Posted: September 6, 2007 6:02 AM