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"some" in this case was Groupon & Zynga, not Pinterest or Instagram. while perhaps not the best cases of getting to sustainable profitability, nevertheless both
by davemc500hats 14y ago
"some" in this case was Groupon & Zynga, not Pinterest or Instagram. while perhaps not the best cases of getting to sustainable profitability, nevertheless both Groupon & Zynga did phenomenally well in customer acquisition and revenue... what they have failed at is long-term retention.
regardless, the argument Fred seemed to be making was that distribution and customer acquisition is getting "harder"... this is not the case.
- cmccabe 14y agoIf the number of people on the internet isn't growing (and it has pretty much plateaued in the US, at least), and there are more competitors, then yes, I would say consumer is "getting harder." Good ideas will always buck the trend, of course, but I think there is going to be some consolidation in this space.
- davemcclure 14y agocheck the stats for both time online & online spend -- I'm sure both are still growing; even in the US. then add in the # of young / old people on smart phones and tablets that weren't online 3-5 years ago, and you could say that even raw # users in US is also growing.
- mbesto 14y agoboth Groupon & Zynga did phenomenally well in customer acquisition and revenue... what they have failed at is long-term retention. So, in other words, a great pump and dump scheme? You make it sound as if their business models should have changed at some point in order to achieve both. Do you believe this is genuinely possible?