While Business Week inflates, and the blogosphere deflates, Digg Kevin Rose’s “$60 million net worth”, and Chad Hurley debunks a “rumored” YouTube $1 billion valuation, but looks forward to a successful IPO, one non Web 2.0 company is profiting off of the under monetized Web 2.0 companies: Google.
“Ads by Goooooogle” are familiar at YouTube, Digg…
YouTube reportedly serves 100 million “snack-sized” video clips a day and Digg reportedly hosts more than 8 million visitors monthly viewing its headlines.
Neither site, however, adequately monetizes the traffic they attract and, as they continue to gain in popularity, each is incurring growing infrastructure costs.
Every Google AdSense ad served at the highly-trafficked sites, however, represents high-margin incremental revenue for Google.
By sharing the advertising pie with Google, Web 2.0 leaders are not reaping the full financial benefits from the traffic they are generating.