I worked at a web start-up a few years ago that offered users a free way to build web pages without code. It was called Zude. We had two rounds of funding, about $10M, and were often covered by Tech Crunch, Scobleizer and GigaOm and ReadWrite Web. The business monetization model was tied to advertising. An afterthought really. Let’s face it, in the web world advertising is everyone’s go-to monetization.
There is an important competing force for monetization today in the start-up world and that is marketing data. Marketing data is not served, viewed, or clicked. It is sold. As behavior, demographics and proclivities. For future use.
When What’s App sold to Facebook it probably assumed advertising would be in its future. It marginally may have thought selling data would be in its future. But, now, the time has come.
Advertising is an opt-in thing. Personally data is not. Not really. Data will become more and more of a privacy issue. Millennials say “Go ahead sell my data,” now. But when they season a bit more, they’ll realize privacy is way more important than seeing advertising.
Data vs. advertising is the new battlefield.
If you put all the paper Americans receive in direct mail and catalogs in a pile, for one year, you’d create Mount Hood (I just made that up, please don’t fact check it.) Imagine what spam folders, robo calls, door knockers and TV ads will look like when data really catches on. Oy!