(13th February) The idea behind infinite scroll of social media
Welcome to the 19th edition of the Geeks Of The Valley (GOTV) Newsletter, where we dive into exciting ideas & insights on ventures & trends + feature two interesting early-stage companies every weekend. If you enjoy and want to keep abreast with insights and interesting early-stage startups before they go big, make sure to subscribe to this newsletter ✌️.
Startup Ideas 💡
Did you know? 🤔
Ever wonder why news feeds are infinite scrolls?
To understand this, we need to scroll back to the days of old media. During the old days, media companies were locked in with two components of scarcity:
i) Time-bounded (e.g., TV show): 1-hour window, the show started and ended. In between got a block of time that is specifically designed for advertisement.
ii) Physical space-bounded (e.g., Newspaper): You sat down and opened the paper on the first page, and it will end up on page 20. That’s it.
This forced them to have SLA around the quality of the content, which led to user engagement and resulted in monetization.
In contrast to new media, where everything is directly correlated with monetization (i.e., Youtube, Twitter, UGC-based in general) that fundamentally formed through a single commonality = bidding model (ex: CPC, CPM, CPI, etc..).
That's why the more content you see (infinite scrolling), the more money these media companies will make.
Geeks Of The Week
Startup name: Shepherd
One-liner: An all-in-one meetings tool, bringing structure and precision to every meeting.
Founder(s):
Startup name: Withe
One-liner: Video chat with customers on-demand right from your site.
Founder(s):
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