this post was submitted on 02 Jul 2023
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Billionaires bought the internet and now they're realizing that it isn't profitable.
Question is what do you do then? First, you try to reach profitability. Get out of the red by milking users and reducing costs, but there is little chance to get that really sweet ROI that you dreamt of in the last decade. What do you do next? My guess is that we will see some websites change ownership into some shadier hands in the next years. The personal data collected could still be worth something after all.
Do websites even make much from collecting data? There are so many trackers and only so many people. Ads are obvious, but it's clear that relying on those two isn't enough for revenue.
I'm guessing that websites with a large userbase will start charging for access to their sites. It might look like the NYT, where you get your 3 free articles, sign in for more, then you're required to pay. Free tiers won't be a reasonable compromise like they are now.
Will people stay and pay, or will they migrate? Most likely the former, especially for the older demo. Moving to the fediverse has been confusing enough for many of us who actually committed to learning about it. An average Twitter user wouldn't put in this much effort.
I’m skeptical that ads themselves actually have a return on investment. There are so many, they are almost entirely ignored. Of course the advertising companies have done a good job convincing people to buy ads. But do they work well enough to justify the cost?
Ads don't make enough. I play a solitaire game that pays out money for sitting through the ads. Those ads are highly targeted and very likely to drive traffic to those other apps that say they will also pay you to play solitaire or even Candy Crush! I still only get maybe $.10 per game and sit through around 3 ads. I accidentally click ads a lot, too.
What else are web companies going to do for revenue, though? It doesn't really cost them anything to host ads.