I’m not so sure that we’re in an advertising bubble, but I do believe we’re up against a creativity wall when it comes to blogging and blog networks. And Nick Denton is seeing something similar.
Blog Networks have always had a low barrier to entry. One only has to take a look at Blog Network List to see how many blog networks have sprung up over the years. While some are better than others – each takes some traffic that might go elsewhere.. and some are damn good and are nipping at the heels of the larger networks.
It was Jack Welch at General Electric who determined not long after becoming CEO that he and his team would aim to either be #1 or #2 in a given business area – or close/sell that business. Welch’s decisions may not have been popular with employees or the communities where GE had ran businesses for decades – but it did make GE one of the most successful corporations – and one of the wisest investments of the 20th century.
Denton is making a move with Gawker that isn’t dissimilar.
Change or Die.
One of the most important things about being successful in business is being willing to make a radical change in what you’re doing in order to maintain that success – and be willing to admit when you’ve had your ass kicked by other competition out there.
Gawker’s changing – and I’m not sure I’d bet against Nick Denton.