Web 2.0 Monetization Models
“The advertising model has come along; we underestimated how big that would be.”
—Bill Gates, MIX06
Many Web 1.0 businesses discovered that popularity (“eyeballs”) was not the same as financial success. Web 2.0 companies are paying more attention to monetizing their traffic. Starting an Internet business is cheaper than ever, and the cost of failure is lower. Anyone can start earning modest amounts of money almost immediately, using the monetization models described in Fig. 3.5.
Web 2.0 monetization is heavily reliant on advertising. Using Google’s AdSense con-textual advertising program is one of the fastest and most popular ways of monetizing a new Internet business. For more information see Deitel’s Google AdSense and Website Monetization Resource Centers at http://www.deitel.com/resourcecenters.html.
Web 2.0 Business Models
The technologies and collaborative nature of Web 2.0 have opened up new business mod-els. Some of these would not have been feasible even ten years ago, but because of Moore’s Law they are not only possible but thriving. At the moment, there is no foreseeable end to the advancements attributed to Moore’s Law, so fantastic ideas that are impossible today may become possible within just a few years. Figure 3.6 outlines many popular Internet business models and lists some companies that use each one. In just about every case, there are many more companies using that business model.
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