Biz 2.0’s lead for a story on VC money is about how everyone wants to buy photo community flickr.
Om Malik dishes the quote, which says Google and Yahoo want to buy it outright, and questions whether flickr missed a chance to cash out.
He then points to Bill Burnham’s analysis of the developing competition between Google and Yahoo, which starts off “For Yahoo and Google, the Internet’s two search titans, Blogs are rapidly becoming both an important distribution channel and a growing cost center. The battle to control this distribution channel, while at the same time reducing its costs, will intensify greatly this year.”
Burnham then rings the changes on blogging as an ad platform in a way that’s completely dead-on, especially for all those smaller blogs that will never aspire to being BoingBoing.
- The company who gets the bloggers and their ad placements makes $$ from a fast-growing distribution channel
- And gets the chance to act as an advertising/affiliate platform for the web
And accounts for some cost issues for the big guys:
- While they must make similar (and often higher) payments to traditional media partners, the payments to blogs are more costly to process (due to large number of blogs) and much more susceptible to click-through fraud schemes.
- The best way to save costs may actually be to spend some money and acquire companies that currently offer services to bloggers.
And so on… All good, provocative stuff.