Return on Innovation � Strategy of the Internet Giants
The possibilities and capabilities on the Internet are increasing by the day. The availability of broadband and its success has further led to an ever-growing market. This has in turn led to fierce competition among the major Internet players to gain a slice of the increasing market. The report titled “From Innovation to Monetisation” studies the major Internet players, the impact of Web 2.0 and the strategies adopted by organizations to increase revenue.
Innovation has always been a priority amongst the Internet giants and technological innovation has paved way for some of the most popular products and services to be introduced online. While the credit for most of the popular Internet products and services goes to these giants (Google, Yahoo, Microsoft (News - Alert), eBay..), they have over the years resorted to mergers, partnerships and acquisitions in order to innovate and delight the customers and increase their market share.
The past few years has seen the dominance of community-centric applications and the popularity of Web 2.0. Web 2.0 has seen the rise of certain other players like MySpace, YouTube (News - Alert), Wikipedia, and Facebook. The Internet giants face competition from these new emergent players as well as rivals from media and telecom industries. There has also been a shift in the navigation patterns and web browsing, policies for audience measurement etc. This has also resulted in some of the major players not enjoying their dominant positions any more.
Advertising has been a major revenue model for most of the Internet companies. With competition increasing, organizations need to find new ways to attract audience to their sites. They also understand the importance of not wholly relying on advertising as the main source of revenue. Organizations strive to innovate new tools and platforms for providing monetary benefits and the focus of the innovation is more around advertising innovations than on innovative services. Another finding of the report is that the “battle between them is being waged over total audience and advertising monies (rather than over each service) – a battleground which is now extending beyond the web as they begin to build multi-platform strategies.”
Some of the major players under consideration for this report include Amazon, AOL (News - Alert), eBay, Google, Microsoft, MySpace, and Yahoo under the Internet giants category, Blinkx, Cyworld, Jajah, Joost, Rhythm New Media, Skype and Truphone in the Innovations sector and Del.icio.us, Digg, Facebook (News - Alert), FlickR, Last.fm, Netvibes, Second Life, Wikipedia and YouTube in the Web 2.0 category. The target audience for this report includes Internet companies, media companies, media companies, investors and analysts.
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Radhika Raghunath is a contributing editor for TMCnet. To see more of her articles, please visit her columnist page.
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