Web 2.0 and Copper Top!

Where are We Going?

I really am so pleased to be a writer here at Profy.com. After writing 30 post or so about a variety of web 2.0 subjects, I thought I would take the time to summarize my thoughts about web 2.0 in general. So much attention and effort is put into all our reporting here and on other sites. Effort should always be focused in order for progress to be made without undue wasted effort. Perhaps I can point out a few things I have noticed since taking up the web 2.0 banner myself.

Web 2.0, or Changing the Web?

I am not the only writer to wrestle with the concept of web 2.0, and certainly will not be the last. One of the things I have trouble with in regard to Web 2.0 is a deep seated understanding that most things in the world are a result of causes that are seldom obvious. A simpler way of putting this would be to say that most things (especially where business and media are concerned) are some machination by powers distant.

Look at the development of the term Web 2.0 itself! For the sake of argument let us assume that the term was actually born in the conference of September 2004 between Tim O'Reilly and MediaLive International, and later fortified by an article in August, 2005 (or right after advertising revenues had leveled out). O'Reilly makes a brilliant case in describing the character and structure of a new Internet based on in depth analysis of changes in the web. The case is almost too good if you think about it objectively. The questions of "who and why" always pops into my mind when studying great movements of any kind, from wars to rumors of wars.

Who Are These People?

MediaLive was formerly known as Key3Media Group, whose focus in 2002 was the development of long-term growth strategies for dealing with increased business volumes, according to (Business Wire) - Jan. 8, 2002. MediaLive applied for bankruptcy in June of 2004, and also acquired WindgateWeb LLC. MediaLive was bleeding money in 2002 and 2003, but somehow managed to acquire another entity? Please remember MediaLive as a main component in Web 2.0 in 2004.

WingateWeb LLC specializes in web based software for the management of enterprise conferences. Their focus is on managing solutions for some of the Fortune 500's technology leaders. Among Wingate's Fortune 500 affiliations is Sun Microsystems, Inc., while none are visibly listed at the company web site. Note that the focus here is not for a better web for you and me, but apparently on some solution for really big business.  

CMP Media subsequently purchased significant resources of MediaLive in 2006, including Web 2.0 (in collaboration with Tim O'Reilly's - O'Reilly Media). According to the press release from PRNewswire:

"Our integration with CMP Media offers technology companies an extremely powerful partner to help them more closely align their marketing and sales initiatives and sales goals, "said Robert Priest-heck, CEO of MediaLive International. "MediaLive's proven event marketing expertise, custom ROI research tools and ground-breaking work in event auditing, combined with CMP's rich database of business decision makers, strong editorial resources and industry experts creates a technology marketing powerhouse that will deliver unprecedented insight and business value to technology vendors." 

Tim O'Reilly is a cum laude graduate of Harvard in 1975, majoring in the Classics and began by writing computer manuals. O'Reilly published the first book about the web out of his company O'Reilly Media. The firm was originally a technical writing firm, but after the books release O'Reilly and his company gained momentum on the Internet scene. Tim O'Reilly also created Global Network Navigator (GNN) in collaboration with Dale Dougherty, and this was web's first commercial web publication with click-able advertisements. A good note here would be to recognize that click-able advertisements were going out of style in 2000 and 2001. 

Why?

A preliminary judgement would seem pretty obvious, money! Of course this is not rocket science either, but to the casual web aficionado Tim Reilly might appear to be the 2005 version of Neo leading everyone out of the Matrix. I bet if we dig deeper we will more closely associate Mr. O'Reilly with agent Smith. The value or potential of Web 2.0 is not really at stake here, but rather enlightenment is. Regardless of how new trends are started, the really important thing is the end that is reached. We are all benefiting from incentives brought about because of these corporations efforts to capitalize on a cheaper market. However, in order to direct our future course, and the course of the businesses associated with us, we must be informed.

Web 2.0 was designed rather than arrived at! According to the same PRNewswire release, United Business Media (the owner of CMP) had a market capitalization of over $3 billion dollars as of January 2006. CMP's goals are clearly stated, the relationship between O'Reilly and CMP are both real and implied, as CMP is displayed prominently on the O'Reilly web site. Part of the media resources referred to in the MediaLive press release really refer to O'Reilly's Media group combined with the assets or money from CMP. CMP was really buying Web 2.0 when the merger took place. 

Let us try to digest one more tidbit, if you will bear with me. According to the IAB and PricewaterhouseCoopers (PWC), Internet advertising revenues totaled $2.8 billion for the first quarter of 2005. This revenue was an increase of only 4.3% over quarter 4 of 2004, quoted at $2.7 billion. Compared to previous gains, and those subsequent to the advent of Web 2.0 by O'Reilly and constituents, this indicated a leveling out of revenues early in 2005. Essentially, companies lost half a billion dollars compared to the percent gains in 2004. For the quarter just previous to O'Reilly's Web 2.0 article, revenues were just slightly higher at $2.95 billion. Third quarter revenues exceeded any previously recorded at $3.1 billion, and $3.6 billion for quarter 4 of 2005. By the first quarter of 2006 advertising revenues were approaching $4 billion at $3.9 billion. This was a 38% increase in revenues in one year! Companies like CMP make their living by producing numbers like this!  

Does this effect the validity of Web 2.0? No, the web has in fact changed, and it has changed for the better. The purpose of this article has not been to vilify anyone, but to simply point out what we have always been dealing with. The real challenge now is not in what we call our improved interactive tool, but in making sure it does not digress into the same old shell game. Make no mistake about it, Web 2.0 is about saving money for big business and making money for them. Our task is to make sure that this ride does not lead back to Web 1.0. Perhaps some of us can study this, and in so doing free ourselves from the label "copper-top". That's right, Web 2.0 was designed to turn a human being into a content providing, money dripping energy source for big business. We have the choice however, it is up to us.