Sramana Mitra recently posted her thoughts on the “Top 10 Vertical and Local Web Trends for the Decade”
She says she’s been a “fan of the verticalization trend on the web.” I agree with her.
Two years ago on a Digital Production BuZZ broadcast, perhaps inspired by the energy I witnessed at 2009 CES, I strongly recommended to our listeners that if they wanted to catapult their success into the next decade, they needed to get into two business models: 1. mobile and 2. localization.
Check out Ms Mitra’s blog and let me know what you think. As usual, I think she is spot on.
Following is an excerpt from her point #8 regarding advertising and business models.
So far, we have overemphasized advertising as the business model of the Web. U.S. Internet advertising revenues hit $6.4 billion in the third quarter of 2010, representing the highest quarterly result ever for the industry and a 17% increase from Q3 2009. The industry is growing steadily and aggressively, with search advertising as its biggest beneficiary. According to S&P Equity Research, online ad revenue will increase by about 10% this year, pushing ad revenue to just over $28 billion in 2011. This trend will continue, as will the strong growth in transaction revenues, as fueled by online shoppers. A JP Morgan report forecasts that e-commerce revenue will grow to $680 billion worldwide in 2011 up 18.9% from 2010. E-commerce in the U.S. alone will grow 13.2% to $187 billion. JP Morgan anticipates that global e-commerce revenue will hit $963 billion by 2013. That, ladies and gentlemen, is almost a trillion dollars.
If you’d like a small (or maybe even a large) piece of that pie, you’d do well to think about this.
Sramana Mitra is the founder of 1 Million by 1 Million. She blogs very intelligently at http://www.sramanamitra.com. I’m definitely a fan.