Wikio is the next well-financed social media tool that relies on the wisdom of the crowd to generate content in similar fashion as both Digg and Netscape.
The Luxembourg-based media search company, recently secured $5.3 million in Series A Funding, which could possibly make it a threat to Digg, though Digg recently got $8.5 Million itself. Netscape has the power of AOL behind it, so it doesn't really fit into the profile of startup Web 2.0 company in the sense that it becomes a contender. Overall, it looks like it will all come down to which company can build the better tool. But as Digg was first entrant in the game, is it possible that Wikio can even catch up.
What is most interesting about Wikio, and where the company may possess the power of oneupmanship, has been its ability to set up shop and launch versions of its tool in France, the U.S., Germany, Italy, and Spain. Now that's really the wisdom of the crowd.
As social media's popularity continues to grow, there's going to be room for all of these players. Very few people get all that they need from just one Web site.
A recent Wall Street Journal story discusses a new breed of influencers, born out of the wonder of social media:
"A new generation of hidden influencers is taking root online, fueled by a growing love affair among Web sites with letting users vote on their favorite submissions. These sites are the next wave in the social-networking craze -- popularized by MySpace and Facebook. Digg is one of the most prominent of these sites, which are variously labeled social bookmarking or social news. Others include Reddit.com (recently purchased by Condé Nast), Del.icio.us (bought by Yahoo), Newsvine.com and StumbleUpon.com. Netscape relaunched last June with a similar format.The opinions of these key users have implications for advertisers shelling out money for Internet ads, trend watchers trying to understand what's cool among young people, and companies whose products or services get plucked for notice. It's even sparking a new form of payola, as marketers try to buy votes.
It's also giving rise to an obsessive subculture of ordinary but surprisingly influential people who, usually without pay and purely for the thrill of it, are trolling cyberspace for news and ideas to share with their network."
With every major media company employing some sort of social media tool into its framework, there's something to be said about the future of well, everything, as we know it. I know I've asked a similar question before, but is it possible that social media is going to become a part of every business model for the next 5-10 years, even if the company is not a pure Web play, or even a media company? My feeling is yes, but others may opine otherwise.
Related Stories: | Topics:Technology, internet + web, Science and Technology, Technology, Social Software and Tagging, Internet, Digg Inc. |
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Recent Comments | 6 Total
March 2, 2007 at 2:48pm by Brian P Halligan
I think social media is an important trend, as you do. The way I see it shaking out is more similar to the way things shook out in the magazine business and less similar to the ways things shook out in the television business.
The barrier to creating a magazine and creating an efficient enough advertising network for one is far lower than a tv station. Therefore, there are far more magazines and they are far nichier than tv/cable stations. TV stations like ABC have news, business, tv shows, movies, sports, etc. There is no magazine with all those different categories -- the market has enabled/forced much more segmentation at the property level.
Along that spectrum, I think there will be even more social bookmarking sites than magazines in five years in deeper niches. The reason is that the barrier to entry for creating one of these and creating a market for the advertising is relatively low.
I actually think it is going to be VERY hard for digg to grow outside of what is a pretty narrow niche itself because it is going to be too hard for new visitors outside of their niche to find interesting content enough that they would bother posting something interesting to them. What is going to happen is that a thousand flowers will bloom in every other micro-vertical. It will start with folks who are using digg now, but aren't quite satisfied with the content -- for example, IT folks who are worried more about infrastructure than web apps. These types will start their digg rival. And so on and so on...
March 3, 2007 at 5:46am by Michael Kenward
It will start with folks who are using digg now, but aren't quite satisfied with the content -- for example, IT folks who are worried more about infrastructure than web apps. These types will start their digg rival. And so on and so on...
Then there is the searchles model, whereby users create their own "groups". They can be as broad or as narrow as you like. They can be closed. by invitation or open.
Links can go in more than one group.
Still work in progress, and clunky in places, but getting there.
I find digg to be dysfunctional. Fine for teenagers with attitude problems. But not for grown ups.
March 3, 2007 at 7:43pm by gertie
mostly in response to michael kenword:
digg, dysfunctional? hrmm.
i don't know if the issue of anything on the web has anything to do with appropriateness (this is for teenagers, this is not for adults, etc.). most great marketing is highly inappropriate. it's the stuff that catches your eye and makes you say, "what?! they're getting away with that?!" i mean, 10 years ago we were watching TV saying, "they're not even telling us what they're selling." and somehow, it was working.
so, with digg, and all of its power, and the power of all the future diggisms, can we decide it's not for "grown ups"?
i taught a web class to a group of realtors last summer. i asked, "who intends on being a realtor in the next 5 years?" they all raised their hands. then i said, "i'm glad you're all here, because you need to know about this if you want clients in the future." then i taught them the basics of social networking sites like myspace and tribe. many were leery, "but i thought the only people on myspace were teenagers! that's not who i want for a client." my response, "1) in 5 years they will be leaving college, and will be looking for their first house. you will still be selling houses then, right? and 2) no, there are a lot more than just teenagers on myspace." on and on, more false beliefs were thrown out. everyone on myspace is a pedophile, everyone on myspace is too young, everyone on myspace is out of my geographic range, etc.
a few months later one of those realtors sold a house to someone she met on myspace. and is on the way to do more!
meanwhile, the skeptics have not only shut out a venue of opportunities, but they're standing still on the path of technology. we're in the information age. if the information is not good enough, well, go find something more grown up to digg!
March 5, 2007 at 5:14am by sohbet alemi
I think social media is an important trend, as you do. The way I see it shaking out is more similar to the way things shook out in the magazine business and less similar to the ways things shook out in the television business.
March 17, 2007 at 5:59pm by AG
Lynne:
Umm. Digg wasn't the first entrant into this social media space of folksonomy. Technorati and del.ici.ous were very notable amongst the early adopters and with much less fanfare from the VC community.
April 20, 2007 at 1:33pm by Casey Kazan
The simple key for Wikio's success will be to headline truly great (adult) content vs. the hardcore geek focus of Digg which, longterm, is limited.