Are Social Media’s “Ads For Eyeballs” Valuations About To Be Eviscerated?

There’s a peculiar tone emanating from the social media space. It’s a little hard to hear, but if you listen closely, it’s there none the less. That sound is the sudden gasp of realization that the most dominating reasoning and defense that encompassed the entire social media space may in fact being laid-to-waste right before their screens. That horror?
The eyeballs for ads model doesn’t work. And – it’s being stated by one of their own. (Insert the scary music tones here)
In a blog post the online publishing platform Medium stunned what I refer to as ‘The Valley’ (i.e., the everything social and disruption purely for its own sake devotees) when it announced two stunning proclamations. The First: It was jettisoning about one-third of its workforce. Second: The reasoning behind it, Here’s an excerpt, to wit:
‘We also saw interest from many big brands and promising results from several content marketing campaigns on the platform.
However, in building out this model, we realized we didn’t yet have the right solution to the big question of driving payment for quality content. We had started scaling up the teams to sell and support products that were, at best, incremental improvements on the ad-driven publishing model, not the transformative model we were aiming for.

This post was published at Zero Hedge on Jan 8, 2017.