MappingTheWeb //

Only in the past couple weeks has Tumblr come to my attention. Web 2.0 naming jokes aside, this new start-up has already made a phenomenal run since launching a mere 4 months ago . Banking off the hype of the “Twitter” space, Tumblr has propelled itself from an unknown to an Alexa rank of less than 5,000. I should have had Tumblr on my list of the the hottest web 2.0 start-ups of 2007, but they eluded me. In any case, they’ve accomplished a remarkable feat in such a short period of time.

Can the growth of the company be attributed to the actual service itself or the recent hype of the space? In other words, does Tumblr have a sustainable business model or is it just a fad?

The onslaught of micro-blogging start-ups and platforms has my mind spinning. Tumblr brought together the interface of Wordpress and the concept of Twitter to create new-ish service. Having said that however, the concept of micro-blogging is so dead simple that unless players in the space can differentiate with killer features, the market is going to get over-staturated and crowded very, very quickly. Furthermore, monetization has been an issue that has not been addressed. These start-ups are going to have to find a way to incorporate ads, charge for a premium service, or face certain death.

Don’t get me wrong - I love simple designs, simple concepts, and simple apps. But if everyone is making the same thing, I don’t feel very inspired. So I dare Tumblr and the rest of the micro-blogging start-ups out there to inspire me and show me something I haven’t seen. Trust me, I know what all my friends are doing RIGHT NOW.

It’s amazing when such a simple application comes along and re-invents the wheel. This was the case earlier this year with Twitter. Now the same can be said for Pownce. Though still in private BETA and inaccessible to most, the features and functionality have amazed thus far. Actually, what is most amazing is the simple concept and implementation. Kevin Rose has struck gold again. His most heralded start-up to date, Digg, was developed from a simple idea. Pownce is no different - and it is poised to take the Internet by storm.

I know I am hyping this pre-launch service without even trying it or giving it any adoption time (although I have seen a demo and some screenshots). But from my point-of-view, I see this as a service people need and will use. The basis is very simple. Pownce operates using the tagline:

“Send stuff to your friends.”

They list four possible items that you can share: messages, links, files, and events. In addition, you have the flexibility to share these items with one person, a group, or your whole list. There is a web-based version, as well as a small, downloadable app.

Primary competitors include IM clients (i.e. AIM, GTalk, Skype), as well as e-mail clients, both desktop- and web-based. These include Outlook, Hotmail, GMail, and Yahoo Mail among others. Secondary competition comes from P2P and private file-sharing programs, include KaZaa, Limewire, Pando, and AllPeers to name a few.

There are many problems when sharing using IM, e-mail, or P2P. Some of the problems that Pownce attempts to solve include:

• Control - Pownce gives you the flexibility to decide who you want to share with.
• Documentation - Pownce provides visual documentation of your sharing history in chronological order.
• Disorder - Pownce provides a centralized area where all discussions, links, file transfers, and events can be managed.

In other words, this product is tailored for sharing things. Unlike IMs, e-mail, and file-sharing programs, Pownce enables an individual to share numerous items using only one service, saving time and hassle. Add to that the fact that Pownce leverages a clean, simple interface with AJAX functionality, creating an intuitive service that is quick and easy to navigate.

Monetization will come in the form of advertising with the web-based version or downloadable app. A premium subscription ($20/year) will eliminate all ads and provide added functionality, including larger file transfer sizes.

I am REALLY looking forward to the launch. I am even more excited to see the response. Sign up for an invitation on the Pownce homepage. I have no doubt in my mind that this ‘little’ app will change the way we share things on the net.

NOTE: Here is a good video review of Pownce by Allen Stern of Center Networks. Here is another favourable Pownce review from Mashable.

Facebook continues to grow at a staggering rate. Though it can already be considered a mammoth, it still has much upside left. The recent introduction of the Facebook Platform will simply promote further growth. The value proposition for any company looking to integrate is quite obvious - a massive, loyal user base. Just ask iLike. The ability to piggy-back off such a large network is a huge advantage for any early-stage companies.

With all this growth, positive outlook, and momentum, one must ask, “What is going to stop this Facebook train?”

An IPO: Going public isn’t as glorified as it’s hyped up to be. Priority quickly shifts from satisfying users (or consumers) to satisfying shareholders. In other words, less attention is focused on the user. Innovation and feature sets are set aside so that business development and revenue generation can manifest.

Going public isn’t a dream. It’s more of a nightmare - especially for a user-centric, consumer-based web company. This is the scenario faced by Facebook. Rumours and gossip continue to circulate about a pending IPO in late summer or fall. Simply put, the possibility is quite real. Though raising capital does provide the ability to bring on added resources, the dilution of equity and ownership is a strong argument against such a proposition. Anyone whose ever had to deal with numerous stakeholders knows that ensuring the happiness and satisfaction of everyone is near impossible. Financial obligations move to the forefront. This usually means that the user is left to the demise of a fiscally-conscious executive posse and a board of directors, rather than a team focused on the user experience.

Another extremely plausible case is…

Social media collapse: Think back to what happened to Digg. Should Facebook choose to betray users, hide or lie about an issue, or provide non-disclosure around a given policy, and users find out about the blunder, watch out. The very mechanism that spurred viral growth and adoption may work in a counter-productive fashion.

Here are a few other, less likely cases…

A sale: As is the case with many takeovers and acquisitions, the user base of the little guy gets disgruntled. All of a sudden, the policies and corporate culture of the start-up are subject to the red tape and bureaucracy of the over-arching big guy. Many users feel uncomfortable and betrayed in a situation such as this, and defect to a similar product/service where they feel more at ease.

Complacency: Though we have not witnessed this as of yet, a failure to innovate may signal troubles for the company. Having said that, this is probably the least plausible and least likely threat to the company. Time and time again, Facebook has displayed a strong willingness to provide innovative features . For this reason, I have my doubts about the complacency of the company - unless of course, Mark Zuckerberg finds more value in yachting and spending time in the Bahamas rather than company strategy.

What do you think will slow down Facebook’s exceptional growth?

Recent executive turmoil has landed Yahoo in the spotlight many times. This isn’t the kind of PR and publicity that any company wishes for. Obviously, changes and transition are in store for this Internet giant over the next year. But where should the focus be placed? How will short term strategy decisions affect long term goals? To be honest, I really have no idea at this point. I think we need to delve further into the strengths and weaknesses of the company to determine where emphasis needs to placed and where losses need to be cut…

Yahoo started out as a directory, then blossomed into a search engine. Today, most people would still consider Yahoo a search engine by all accounts. I do not believe this to be the case, although search obviously does play a big role in the success or demise of the company. In my mind, Yahoo is a services company. Unlike Google, which derives the majority of its revenue from search and advertising, Yahoo provides a vast array of services which diversify its revenue stream. We do know that Yahoo Search Marketing (i.e. the new Overture) does bring in large revenues. Having said that however, we also know that many other services drive huge revenues that Google (among others) fail to acknowledge. Examples of this include:

• Yahoo HotJobs 
• Yahoo Shopping (i.e. stores)
• Yahoo Dating and Personals
• Yahoo Autos
• Yahoo Travel

All of these areas drive revenues that are NOT advertising-based. This presents a significant opportunity, as well as the possibility cross-marketing and promotion. Evidence is apparent by the willingness of Yahoo users to spend money on services they find value in. Once this trust threshold can be reached, the sale of further services is quite possible. I guess what I’m trying to say is:

“Yahoo is NOT a search company. Search simply provides an entry way into Yahoo’s world of services.”

This does bring up an interesting point however. If Yahoo places less emphasis on search and continues to fall behind, then they are failing to provide that initial entry way or door. Yahoo must continue to allocate a reasonable amount of resources toward search to *at least* remain on par with the rest of the second-tier players (i.e. MSN, Ask, AOL). Failure to do so will not only affect the prospect of future users, but also the loyalty of current ones.

Many may argue that Yahoo should push the limits and throw huge amounts of resources into search in an attempt to thwart Google and create the next-generation search engine. My thought for those people is this: Yahoo has already established an image in the minds of consumer. The company has not positioned itself to be the best search engine, providing cutting-edge, relevant results. Their search technology is ‘good enough’ - it is the status quo. The company and brand would have to re-invent themselves to do so, and spend a ridiculous sum of money in the process. Even then, I still don’t think Yahoo could compete at a higher level. Google, on the other hand, is known as the leader is search. The company is globally recognized for its PageRank algorithm and relevant results. Positioning of the brand has already been established. Lastly, further evidence against the re-invention of Yahoo: the recent attempt at re-invention by Ask.

Whether Yahoo continues to focus on search or put more resources into other services is yet to be known. One thing is for certain - a strong action plan is need, and it is needed soon. The fate of the company will be strongly influenced by decisions to be made in the next year. Good luck to whatever management is left.

Everybody has their own list of web apps they CANNOT live without. These are the essential tools to daily life on the net. I find that my top apps tend to remain the same, although some changes do occur.

Anyways, here is MY list. Be sure to add your apps at the bottom…

10. Wikipedia - my source for information and research (PS. I know it’s not 100% accurate).

9. Digg - informative and entertainging news bits and articles.

8. Skype - allows me to keep in touch with friends, family, and contacts over IM or voice. 

7. Feedburner - keeps track of my RSS feeds and stats. 

6. Clicky - provides in-depth web analytics with a clean, usable interface.

5. iGoogle - displays all my RSS feeds; doubles as my search page. 

4. MSN Messenger / Hotmail - used for IM with friends; web-based e-mail. Ya, ya… I could use GMail, but all my friends use MSN Messenger and it integrates with Hotmail, so give me a break. 

3. Wordpress -  best blogging platform available, in my mind.

2. Firefox - my web browser of choice… obviously. 

1. Facebook - essential social network that keeps track of friends, family, and colleagues.

Just missed the list…

• YouTube - premiere video site on the net; this was tough to leave out of the top 10.
• Craigslist - used often, but on an inconsistent basis.
• Technorati - used for searching blogs quite often.
• Joost - I dabble from time to time…
• MyBlogLog - blog social network; used to use more, but it’s being overrun with SPAM.
• 9rules - my blog network; not so much a tool as it is a tight community.

So, that’s the basis for my life on the net. I’m sure many have similar apps of choice, while others have their own favourites. It will be interesting to look back at a post, such as this, in a year’s time to determine what changes have occurred in our online habits and behaviours. Which companies fell off the list? Which ones were added? The evolution of the Internet will no doubt affect the evolution of our ‘lists’, as new products and services crop up, while others fall by the wayside. Innovation is occurring at a blistering rate and no-one can remain at the top forever.