We have learned about the three key value drivers of online publishing in a previous blogpost. Based on these insights, it's pretty easy to derive a general formula of media value generation.

The interesting thing about such a formula is that it allows us to predict the power and value potential of any given online publishing system by measuring it's performance on the different dimensions of the formula. It doesn't tell you what you have to do in terms of content design to maximize its value, so this is not necessarily a useful tool for the content creation process. See it as a bird's perspective on the Web 3.0, its technologies and value logics. A formula that allows us to calculate the performance and economic power of any publishing platform, and the web in general.

So if we take the three value drivers and multiply them with each other, we get to the hourly wage of an author:  

speed × traffic × profitability = hourly wage  

We even see that the units make sense: content / time x traffic / content x money / traffic = money / time, or dollars per hour. This formula reveals the secret behind a higher profitability in user-generated content: authors need to be able to publish in less time, achieve more traffic, and earn more money per visitor.

For a system architect, that means: develop the technologies that make publishing even easier and faster; that connect authors more effectively with their target groups; and allows them to implement the technologies that drive visitor profitability. That is, of course, easier said than done, but at least now we have a formula that allows us to compare and benchmark systems and infrastructures in regard to their value generation potential. The Web 3.0 is coming closer….

Don’t forget to join the discussion at my Web 3.0 group!

This article is part of Web 3.0 – the book by Johannes Bhakdi, available on sophotec.com