Home > Uncategorized > Winner takes it all in the digital space

Winner takes it all in the digital space

Over the last one year I have constantly come across this phrase ” The winner takes it all in the digital space”. Being made of sterner stuff I ignored it, till now. In the last few months having launched a product meant for a global audience, I have begun to pay more attention to this phrase. Some of the observations that I would like to share are as follows:

1. Twitter and the social media phenomenon is forcing bloggers and journalists to pay more attention to “getting the story out first” than actually going in depth of the story. Getting the story out first has definitive advantage in creating velocity for the story i.e more retweets and social mention which then drives the Google SEO.

2. Because of the obsession around velocity of the story the focus is on companies that are very newsy or can drive a lot of retweets and social mentions etc.

3. The companies that happen to be newsy are invariably Facebook, Twitter, Google, Microsoft, Hulu. So most of the journalists and bloggers are super focused on stories coming out of these companies or stories around these companies.

4. The fact that the PR machinery of these companies are super connected to these bloggers and journalists does not help matter

5. So you now have a situation where most of the stories written are about these newsy companies. These stories are then tweeted and retweeted making these companies more newsy. It is like the self-fulfilling prophecy where the noise about these companies overwhelms the consumers and he then pushes it further in his social network and the chain starts all over again.

According to Compete, a Web analytics company, the top 10 Web sites accounted for 31 percent of US pageviews in 2001, 40 percent in 2006, and about 75 percent in 2010. “Big sucks the traffic out of small,” says Yuri Milner a Russian Investor. “In theory you can have a few very successful individuals controlling hundreds of millions of people. You can become big fast, and that favors the domination of strong people.” Milner owns 10% of Facebook today.

More and more small developers who cannot compete in the open internet space are building apps meant for platforms like Apple where the chance of being discovered is higher. In this scenario the success of small companies like Zynga, Foursquare, Groupon etc is very valuable.

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