Internet/Media: 5 things that will define 2011 Lightspeed Venture Partners Blog.
1. Year of Social Utilities
With over half a billion users and open graph integration, Facebook is the Internet with social graph at its core. This is as much of a game-changer (due to a new distribution model based on the social graph) as going from offline to the Internet was in the 90s. A number of startup companies, I call them social utilities, are leveraging the social graph to potentially disrupt traditional online businesses such as dating, e-commerce, travel and recruitment.Yardsellr,Branchout, andMertado are examples of such companies and we will witness a few scale companies emerging out of this space in 2011.
2. Display Advertising Enters a Golden Era
Innovations in media transaction platforms along with a better understanding of target audience have brought an amazing level of scale and efficiency in display advertising market. The use of data and technology will disrupt the premium, guaranteed media buying segment in the coming year resulting in an open, transparent marketplace for audience-based transactions. This marketplace will help bring price equilibrium to media supply and demand thereby further increasing the marketing budget spent on this medium. Startups to watch in this space areLegolas Media,Krux Digital, andBrightTag, among others.
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