1. When you google on some topic on
Google, it displays a list of a million websites and related links. Does any body go beyond few pages to find relevant information before he tries another keyword for next search ? Does anybody bother about the quality of information on the 1,00,000th page ? Does it provide any link to navigate to any nth page of search result ? Does it worth to provide plethora of information where few precise links and information are enough ?
Does it provide useful information which is not found simply on any website? Everyone finds 99.99% of these 1 million search results as crap and useless. That's the primary reason that local flavored search engines like
www.guruji.com, www.asklaila.com, www.justdial.com are hot start-ups in India. They cater to the specific needs of local people with precise information. As for, they provide city specific search and specific details of places people looking for like Chinese restaurant at
sector 1, Kolkata. It would be quite interesting to watch how these local search engines take the giant by its horns.
2. Last year
Yahoo! offered $1.4 billions to buy
Facebook, a social networking site like
Orkut. But founder of
Facebook rejected this offer. The price tag was kool $2 billion.
Google acquired a Chinese video sharing site
YouTube for $1.2 billion. Does
Facebook deserve such obscene amount of money ? Why didn't
Yahoo! create a similar social networking site at the cost of few millions bucks as it has world class of programmers and designers and brand value to attract new users? Ok! later on
Yahoo! got some sense not to go for next bid.
It's not doubt that these SNS (Social Networking Sites) and video sharing site are huge hit and are cyber hangouts for millions of users. Market valuation of these sites are huge primarily for millions of users and high site traffic.
Do these two factors justify price in the range of billion of dollars ? Justification may be like...revenue through Ads or sharing the critical data with research firms of music industries to analyze trend in music and video preference among users.
I doubt the feasibility of the concept of revenue through Ads. I have put below the screen-shot of the analysis of its users by
Orkut on various parameters. This pattern is similar for all SNS.
Maximum users are in the range of 18 to 25 yrs old. They log in to connect to friends, for chatting and some fun and they hardly bother to get some genuine information on any product.
have you ever looked for some product information on
Orkut ? Most of the communities or discussion forums are related to their hobbies, film stars, films, school or college. For sake of visibility they can put Ads in such community forums but how many users are active members of community who can even view those Ads ? Once Google tried to put Ads on
Orkut related to community topics but later on removed all Ads from it. One major concern is tremendous increase in fake profiles and porn stuffs. Just think...if site has 50% porn content and fake profiles then what kind of Ads it will put on such communities and profiles ? It will also dilute the brand value of site.
YouTube contains 60% porn videos. In spite of the fact, acquisition of
YouTube by
Google highlights the mindless and ruthless competition to acquire the internet space to maintain superiority although it generates no revenue in near future. I wish...may be in near future they can figure out how to generate money from such sites.