The Rise of Content Farms
economist.com
economist.com
Lots of small businesses succeed by creating "long-tail" content, and using it to get organic traffic. A ceramic mug company, for example, could have a blog that also told readers how to paint ceramic mugs.
The Demand Media model is to outrank that content (of course), and then to monetize the ranking with contextual ads. So the article's content must be meaningful to search engines--but it can't be a complete answer to whatever the visitor was searching for. If it is, they'll bounce; if not, they'll keep clicking, ideally on an ad.
Someone who controls the ad (and captures the profit from transactions) can have a more relevant and useful call to action. The article, for example, can end with "Ready to paint your ceramic mug? Order a mug painting kit now, and get 10% off!"
Instead, the mug company will notice that their traffic is dropping since they can't rank for the same long-tail content. Instead, they'll start paying for traffic. And when they do, Demand Media gets the money for their next article.
I don't have a degree, and Demand Media signed me up. I wonder if they've raised their standards.
Quite the grasp of history there...
"AOL, a web portal which was recently spun off from Time Warner, a media giant, but which a decade ago actually bought Time Warner."
Is that better? Does it make any difference?
Demand Media (DM) only covers the surface of a topic. Never a deep dive. Thus by nature, they are a lead generator. That's why they have descent ad rates and can pay real wages for content. But IMHO, they haven't begun to really profit from this position.
In content farming, whoever pays the most to their writers ultimately wins. The best writers are attracted to the best paychecks. Because DM invested hundreds of millions in established domains, they bought traffic and offer better cash versus just posting on your own blog.
DM will ultimately crash directly into the way of traditional media outlets. And it will be the aggregators like google news and huffington post who win. Like many businesses, it's the distributors who make the lions share of profits.
I don't know, does the increased communication power and productivity of technology break even here? (assuming it's used correctly)
Is the average journalist using modern tools to their full potential?