Steve Rubel on the the Web 2.0 Economic Conundrum

Micro Persuasion mentions how people in Web 2.0 are making money in a rather incestous way, failing to attract mainstream advertisers.

Mainstream advertisers are starting to use web 2.0 sites. Lately I've seen ad's from Sony BMG and HBO through blogads on Byron Crawford's site.

Web ad agency Organic puts ad spending on blogs at $40 million this year. I'm not sure how they come to this figure and I'd be surprised if it isn't more.

Meanwhile Fairfax Digital is making 62 cents per unique with yearly revenues of $96,000,000 AUD.

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