Ning Archive

Ad Innovation Check In

When did I start using Innovation non-ironically? Wow. I've been a business reporter too long.

At any rate...per my earlier post 2008 is the year for ad innovation in the Web world, and I'd argue that's harder than product innovation. Why? Product innovation is fun, first off. By its very nature you are working to give people something that will delight them. It's a time when anything is possible and you are your users are totally on the same side. But when it comes to finding new, clever and affective ways to deliver ads over the Web you're inherently at odds with a user that doesn't want to be interrupted, tricked or otherwise profited from. With Web 2.0, community-based sites this is typically where the whole mob uprising thing comes in. (See ch. 5 of my book, or even just the chapter title: "The Mob Giveth and the Mob Taketh Away.")

It also can require a different skill set: Is a product innovator always a good business innovator?

That's a big reason YouTube sold to Google. Amid the iPhone hype yesterday, a lot of people missed a story in AdAge about Eric Schmidt's latest YouTube advertising idea. First off, even Google-- the king of online business model innovation or at least execution-- has not been able to crack the YouTube nut. As the story says, video views swelled to an insane 4 billion in March, even as revenues were just $90 million, according to Bear Stearns. That's a pretty big disconnect. Schmidt has said it's priority no. 1 for Google this year and rightly so. As has been documented extensively by every analyst and business reporter on the planet, Google needs a second act because it can only gain so much more market share in search and on Wall Street it's all about obscene growth. (In the years Oracle-- and a good many other business software companies-- were in Wall Street's dog house they were still indecently profitable.)

The new plan basically lets content makers sell ads on their own video "channels." It's a page out of Ning's playbook-- currently the wiliest business model in Web 2.0 IMHO. Ning from day one told users trey could pay a monthly fee for your own social network, sell your own ads or have them sell ads on your page. No free lunch, means not having to come back and charge for lunch later.

I think it's one of the smarter strategies for YouTube so far.

Me in Israel!

This is a video interview that JD Lasica shot with me on the beach in Tel Aviv last April, just before the book came out. The fact that I look human and sound coherent is a testament to blush, the beach, JD's skills as a videographer and interviewer and the very concentrated pina colada I was drinking. At this moment my bronchitis was turning into pneumonia and I would collapse just a few hours later and be told I was too sick to even fly home! Even still watching it made me want to go back to Israel!

Your Chance to Mock Valley Millionaires

So when you write a book, people and companies keep asking-- even begging-- to throw you a book release party. Then, publication comes, and you hear crickets. Also, bookstores apparently almost never do signings anymore. So I'm throwing my own party on my release date May 15. Here's the link to the open Facebook invitation. It's open to everyone, but the place (TBA soon) maxes out at about 100 people so no promises there won't be a line for latecomers!

Everything at the party is mostly donated (including the time of my friend Johanna Lopez who is organizing!) A generous sponsor appears to be white-knighting in to take care of a few expenses in exchange for me signing my hand off for a pile of books. (Happy to do it, people!) Because I sort of sprung this on Penguin, I will be fronting the cost for the books so you guys better buy copies!!

Anyway, more on the details later today. For now, your help on the drink list. A few liquor vendors are donating spirits, and we'll be coming up with cocktails named after the moguls in the book. I have an idea for "The Kevin Rose" and "The Max Levchin" already, but figured in honor of Web 2.0 and user generated content I'd solicit some suggestions for the others.

Why Andreessen Solves Facebook's Board Problem

Facebook has a board problem. Only it's a problem that any control-freak entrepreneur [ok, that's redundant] would love to have. As Kara and others have reported, the sum total of Facebook's board is Mark Zuckerberg, Peter Thiel and Jim Breyer. What is less well known is that there are actually five seats, Mark just controls three of them.

This has been nothing but a positive for Mark, and so far, for Facebook. I'm not supposed to divulge much until my book comes out, but had this board arrangement been different, so many pivotal moments in the young company's history would have turned out drastically different. The News Feed debacle, turning down Yahoo's overtures, even -- arguably-- Mark's lock on the CEO slot. Mark knows this. Smart -- and previously burned-- people advised him well when he was starting Facebook. It's not an accident the company has this structure.

But Facebook is growing up and if it does intend to go public in a year or two, it needs to start structuring itself like a grown up company. Filling out the management team with a CFO like Gideon Yu and a sales, organization-scaling expert like Sheryl Sandberg are some of those moves. The board is another very necessary one. And one that Facebook has not taken lightly. After all, a fourth board member shifts the balance of power. Zuckerberg does not have automatic veto anymore.

IMHO, Andreessen is the perfect fit.

Yes, LinkedIn Is Worth $1B

I've already criticized blogs that fall all over themselves for a scoop that's not in any way newsy or surprising. But at least they are telling you news. Even worse are blogs that re-purpose news without any additional insight or analysis. In the name of good karma, I won't link or call anyone out. But I don't think it's too much to ask to give people a reason to read your blog.

I am not giving people the news that LinkedIn is raising a round of capital and wants a nosebleed valuation. Again, like Twitter, not a surprise they can. Like Ning, Slide etc, not a surprise they are using Allen & Co. to do so. Like everyone else in the Web scene: LinkedIn is making a statement it's going it alone versus pimping for an acquisition, so put them in the column with Ning, Slide, Facebook, etc. (All of which are in my book, so Go Team Once-You're-Lucky-Twice-You're-Good!)

But I am giving you more than the wishy-washy "We'll-all-find-out-together!" analysis: Yes, LinkedIn is worth $1 billion.

Impressive Feat by SAI

I'm very busy earning my three-day-a-week keep at Yahoo this way-too-early Monday morning, but I hope to carve out some time to go through Silicon Alley Insider's SAI 25 index today. It's a list of the 25 most valuable private digital companies. Folks, these things are hard to produce. For one thing, getting the real numbers can be an Oceans 11-heist-style feat of reporting. Plus, a private company is typically valued on its potential not its revenues-- or even more subjective, it's valued on what it's worth for others to put money in the company. (i.e. Facebook, Microsoft and that $15 billion valuation)

While Facebook is no. 1 on the list-- at $9 billion, not $15 billion-- there are some surprises.

Twitter Raises $20 M? That's News, Why?

Twitter has raised between $15 m and $20 m according to Cnet. Twitter's next round of cash has been a subject of much blogging and speculation and scrambling around trying to get the scoop. I haven't been doing any of that, frankly. Because "scoops" are only interesting when they're surprising and Twitter raising a fat round of venture capital is in no way surprising.

Four reasons follow on the jump.

Why I Don't Work at a Newspaper

I've been catching up on my pmarca blog reading. (That's Marc Andreessen for the uninitiated.) We haven't hung out in forever, and it's a nice way to feel like we are. Andreessen is a great read because he reads everything in the world. He's the kind of guy who sends you a zillion white papers during an IM "chat." (Back when I used IM....)

Even Better than My Wired Review...

...is my review by Paul C(K)arr. I know it was hard for him to be nice, so that makes it doubly special. Maybe even triply. For people (my mom and husband) who don't want to read all of the SXSW related stuff about me in the post, here's the PG version of his book review (on the jump). See, now if i could just tie every Sarah-Lacy-Twitter-Hater (tm) down and MAKE them read my book, they'd love me too!! Seriously, thanks Paul. From someone who knows the struggle of writing-for-pay, it means a lot.