The future platform goes deeply vertical

Everybody is talking about platforms. But where the focus used to be on horizontal platforms a la Facebook, it seems like increasingly the discussion is centering on platforms that go vertical instead.

Today this is where the VC’s are placing their investment as shown by the 25M USD round of financing for Wetpaint. And there are two very good reasons for this.

The first reason is that verticals provide better opportunities for revenue generation via advertising. It goes without saying that if you have a targeted product, your target group is better defined and may be worth a whole lot more to advertisers than if you try to be everything to everybody. Platforms that cater for this opportunity are of higher value than more horizontal platforms.

The second is that people are getting to the point where they have had enough of socializing for socializings own sake. They are increasingly asking themselves the ultimate question: ‘What’s in it for me’. Hence they flock towards the niches and the serving of their special needs and interests. And this again provides amble opportunity for platforms with a vertical focus.

Vad NU! is a consultancy company owned by Mads Kristensen and specialized in helping clients take advantage of the business opportunities created by new media. Click to learn how I can help you and your company.