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3 web 2.0 business models – where do you fit?

First lets talk about what the consumer needs, because businesses exist only because consumers have needs. On the web the most common tangible product is information, so web users are Information Consumers. What do Information Consumers need?

  1. Information Consumers need information – role filled by Content Producers
  2. Information Consumers need somewhere to go for that information based on their specific needs – role filled by Content Aggregators
  3. Information Consumers need to take action on that information – role filled by Content Advertisers who suggest the products/services for taking action

Content Producers

Web 2.0 businesses that fit the Content Producers model gather raw information and make it available via web services. Their primary costs are research, API development, and high performance servers. They make money from Content Aggregators that subscribe to their data services. Google is an example Content Producer because they make their raw information available through their Google Ajax APIs.

Content Aggregators

Information published by Content Producers is used by Content Aggregators to fill a specific need for Information Consumers. Their primary costs are information service subscriptions and web development. They make their money from Content Advertisers that need to promote their products to the Content Aggregator’s specific audience. Nearby Tweets is an example of a Content Aggregator because it uses Google's Ajax APIs and Twitter’s Search API to fill a specific Information Consumer need: to find nearby people on Twitter automatically.

Content Advertisers

Effective advertising involves sending messages tailored to a specific audience. Content Aggregators can provide highly segmented advertising channels for Content Advertisers. Although the Content Advertisers model can fit any organization, their primary costs in Web 2.0 will be advertising costs. Their revenue will come from the business opportunities generated by their advertising. An example of a Content Advertiser is a consumer product company like Apple.

So where do you fit?