A large chunk of the most important and/or profitable tech businesses are really private “markets.” That is, they don’t just sell goods and services. I would put all advertising businesses in that category too
Amazon is an obvious (and very literal) example, as are app stores. But, Youtube is another example. People post videos. People watch videos. People place ads on videos. Google is at the centre coordinating this stuff.
Very few markets are cleverly designed or run. Adwords was an example of a clever one. The auction, is the centrepiece and it reached its current state pretty early in adwords’ history. It was designed cleverly, with a ton of attention to incentives and 2nd order effects.
Youtube, as a marketplace, is terribly designed. The “monetisation” systems are almost designed to produce spam, and discourage unique “maker” content. The differentials in earnings of similar content on youtube, vs any other medium are immense.
Why does a podcast, TV show or other medium (lets assume it’s the same content) make so much more than a youtube channel. How is it possible that a million views a week is not enough to pay for a 2-man basement operation?
The big boys need to get some economists on board, good ones.
Amazon is an obvious (and very literal) example, as are app stores. But, Youtube is another example. People post videos. People watch videos. People place ads on videos. Google is at the centre coordinating this stuff.
Very few markets are cleverly designed or run. Adwords was an example of a clever one. The auction, is the centrepiece and it reached its current state pretty early in adwords’ history. It was designed cleverly, with a ton of attention to incentives and 2nd order effects.
Youtube, as a marketplace, is terribly designed. The “monetisation” systems are almost designed to produce spam, and discourage unique “maker” content. The differentials in earnings of similar content on youtube, vs any other medium are immense.
Why does a podcast, TV show or other medium (lets assume it’s the same content) make so much more than a youtube channel. How is it possible that a million views a week is not enough to pay for a 2-man basement operation?
The big boys need to get some economists on board, good ones.