Deluge of Content on the Web Swamps Yahoo (and puts content creators in a tough spot)

The Wall Street Journal in Deluge of Content on the Web Swamps Yahoo:

As Web traffic explodes, Internet companies are struggling to profit off ads shown next to the articles, videos and other content offered to viewers.

It’s a simple rule of any market. The more information that is created, the more the value is reduced. And despite attempts to woo spending with bigger, bolder and more targeted ads, services that help consumers navigate that content, namely search, remain the big money makers online.

As I (and many others) have written before, it doesn’t look like display advertising is a sustainable business model for media sites going forward (and I think we can agree that it makes for a pretty bad user experience). This puts content creators in quite a predicament: how do you make money from producing content? The WSJ piece points to the central problem here:

“People tell me that content is king, but that is not true at all,” says Rishad Tobaccowala, chief strategy and innovation officer at Vivaki, the digital-media unit of Publicis Groupe SA. “Most people make money pointing to content, not creating, curating or collecting content.”

Although the value of pointing to content is indisputable, we need a better way than display ads for content creators and curators to make a living. And I don’t think we quite know what that looks like yet.