Feed Your Mind?And Low Burn Rate Will Follow
It's quite possible that a reader who logs onto www.feedmagazine.com to read a corny editorial about Coney Island will be just as interested in downloading a sarcastic series of shorts at www.suck.com. But as with many similar Webzines, the two sites are also interested in combating unwieldy promotional costs. As a result, they're joining forces by linking online and behind the scenes for survival's sake.
Both sites will become properties of a new company, Automatic Media, which is already backed by several million dollars in venture capital financing. For Internet publishing, this may very well be a sign of the times. Whereas the Internet portal began as a lower-cost means of distributing content without having to contend with fluctuating print overhead, while at the same time reaching a global audience, online moguls are now asking whether advertising revenue alone can cover the cost of promoting online wares. For the creators behind Feed.com and Suck.com, the monies needed to support the sites started to outweThe Internet Advertising Bureau says is more than a hunch.
According to IAB's Internet Ad Revenue Report, Internet advertising revenue increased by $2.1 billion in 2000. The consumer-related markets have experienced the most growth, reports IAB, with a 30 percent increase. This PriceWaterhouseCooper study also expects 2001 to bring a greater return on investments for dot-coms using creative means to seduce Web visitors (such as online forums, easy-to-use links and multimedia additions), as well as encourage advertisers to buy into online promotion in hopes of courting a new burgeoning buying base.
Using the same ideology as fodder for Feed, Steve Johnson, the editor and co-founder of the pop culture and technology site, admitted recently to The Wall Street Journal, that profit is not always made by content alone. This merger will result in a shared sales force that is expected to cut costs for both Internet publishing sites overall. Automatic Media has specifically drafted plans to expand operations by intensifying Web site/user interaction; acquiring a new VA Linux System to serve higher traffic and to eliminate spam; and linking to other sites for tighter network integration with no immediate plans to hire or terminate current employees from either operation.