The September issue of Wired magazine includes an article proclaiming the death of the web (The Web is Dead.  Long Live the Internet).  After reading the article, I think the title may be a bit of an overstatement.  The Web is Evolving.  Long Live the Internet might be a more accurate title, but probably not as attention grabbing.  All that aside, it is an interesting article for those of us in the affiliate marketing industry.

The main point of the article is that the web (the browser controlled delivery of content on the Internet) is in decline as the majority of Internet traffic is dominated by a very tiny number of websites (Google and Facebook being two of the obvious culprits) that are slowly closing down the open Internet.  The argument is that the web will continue to shrink as more and more professional content providers seek to create ‘walled gardens’ (specifically apps) where they can hopefully generate a larger revenue stream than the more open web environment has produced.  It is probably an oversimplification, but the argument could be boiled down to the idea that apps are going to bring about the downfall of the web as we know it.

There is no question that many professional content providers (mainly traditional media companies) have struggled to transfer their old-school business models onto the Internet.  These companies have typically made their living through advertising.  Yes, subscriptions have been a part of their revenue model, but in many cases a subscription to a magazine doesn’t even cover the cost of printing and mailing.  Instead, subscription revenue was just one way to help offset some of the expense of generating and delivering the content to readers.  The real money (and profit) comes from the advertisers.  The hope was that simply transferring this model to the online world (where their distribution costs would decrease dramatically) would lead to similar if not even greater profit margins.  However, banner ads on magazine and newspaper websites turned out to drive a lot less revenue than those old print advertisements and sites like Craigslist essentially replaced the classified ad section from the newspapers.

With the rise of smartphones (especially the iPhone and Android models) and now the emerging tablet/e-reader market (iPad, etc.) many traditional content companies are looking to paid apps as the Holy Grail that will save their industry and prop up their old business model.  The app industry is certainly growing dramatically, but will it really replace the web?

Without a doubt, the way we use the web is changing.  Mobile devices have played a huge role in this change, as more and more people use them to access the Internet.  Although surfing the web on a smartphone can often be a frustrating experience.  The web is evolving to meet consumer needs with WAP pages and sites that are optimized for delivery to smaller touch screens.  While today you may prefer using a specifically designed shopping app when looking for the latest Stephen King book on your phone, tomorrow you may be happier visiting a bookstore’s website that has been designed specifically for mobile customers.  Apps are definitely the hot trend today, but with the development of HTML5, improving broadband and wireless capabilities, and other continuing technological advances, the browser-based web is still likely to remain the true ‘killer app’.

From an affiliate marketing perspective, adapting to the constantly changing Internet environment is just part of doing business.  Certainly the app market has become one aspect of that changing environment and will likely continue to grow in the future, along with the web and whatever new developments are just around the corner.  Affiliate marketers will adapt to the changes and find new ways to leverage these trends.  Our industry is driven by a focus on following the consumer and, of course, the money.  Wherever the consumer audience goes online (to a website, a portal, an app, etc.) affiliate marketers will find ways to engage them.  So, long live the web, the app, and the affiliate marketing industry.

Filed under: Industry News by Tom Wozniak