Sumit Sharma

Incumbent aggregators should beware

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The barriers to compete against the large incumbent powerhouse aggregators such as Google, Facebook and Amazon of today are not as high as the technology community may make it out to be. The key will lie in being able to effectively aggregate and provide relevant data – and in the next few years as we are drowned in the influx of information, our loyalty to Google, Facebook will be quite fickle in the same way that our loyalty to Yahoo was when Google came, or to Friendster when Facebook came in.

This will be quite disruptive to the monetization models of aggregators today, where it is primarily based on advertising, and the companies with the biggest advertising budgets win however going forward this disruption allows for companies with the highest relevance to win. For example, if you Google searched for “buy Wilson tennis racket”, the sponsored links appearing at the top may be from bigger companies (that may or may not stock Wilson and there is low chances of the aggregator filtering through that information as a criteria) however, in a world where businesses are semantically contextualized, perhaps the business geographically closest to you will appear on the web, or the businesses that only specialize in Wilson rackets will appear on the top – that will question the integrity of aggregators portraying sponsored links before more relevant search results.

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Written by Sumit

November 8, 2009 at 7:08 am

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