After a $500,000 Price Tag, Digg is no More

Digg- Sold
Digg- Sold

Article first published as After a $500,000 Price Tag, Digg is no More on Technorati.

After being born in 2004 as a very promising start up, and taking over $45 million dollars in rounds of investment, Digg has finally come to a halt. It has been sold for merely $500,000 by New York startup incubator Betaworks.

Betaworks reports Digg will go back to being a small start up with News.me building it back up. Mashable also reports that a series of troubles have hindered Digg as a company, going from poor traffic, changes in management and overall staff, including Kevin Rose’s departure back in 2011.
Digg was a great place for link building, news sharing and community creation. However, similar companies stepped in to make room for competition like Reddit. This is also the other side of the technological story: companies might grow exponentially, but they also can plummet with the same speed.

Today we have other social networks that focus more on visual aids and rich media rather than just text in order to succeed. Take Pinterest as an example: it has become the third most important social network almost overnight, all thanks to its image & video curation. Facebook has also taken upon itself to evolve into a more rich media related network by purchasing Instagram.

Some others have chosen niche markets in order to survive, just like MySpace. We can only hope that Digg does come back into something stronger.

Social Media vs Apps, or both?

We are living an era in which traditional media is not trusted nor is it profitable anymore. People don’t read the paper; they scan through their iPads or smartphones. People don’t watch TV, they watch TV shows or movies on multiple, Internet connected screens (although the movie theatre experience is a subject apart). People like to play and interact with their favorite brand, this cannot be done via traditional media.

For not so long now, people were starting to panic when they saw that their traditional marketing strategy was not delivering customers. “Is this company going down? Am I broke” many entrepreneurs might have thought. Those that were not early adopters or innovative minds, were being left behind on print.

It’s different today. Right now, log into your Facebook account, how many brands or companies have you “liked” on that network? How many of those have a Twitter account that you also follow? Even if companies and brands still publicize their product or service via traditional media, they’re using that to inform you that they have an app ready for you to use on your preferred device, or that they have a channel of communication in X social network.

Now, the question is, out of the new and innovative communication channels, who is winning the race: apps or social networks? Let’s break them down one by one.

Apps. They are everywhere. “There’s an app for that” started out as a joke, but now, it’s nothing but the truth. Anything you want to solve, you can do so via an app installed in your smartphone or any other smart device. Heck, my iPhone has apps I barely use but that have saved me from a lot of trouble. For instance, I installed the Flash Light app; yes, a flash light on mi iPhone! Spare time aside, there are plenty of useful interactive apps from famous brands that achieve direct access with their consumers.

Take Nike for example. They transformed the runner’s culture into a whole smart and connected community. You run, it syncs up with your favorite playlist, it tells you how many miles you ran, how many calories you burnt, etc. It changed the whole runners scheme. Sure, billboards and TV commercials are still up now and then, but this direct and customized experience cannot be achieved with traditional media.

Social Media. Facebook, Twitter and now Pinterest are the most effective social networks. Let’s skip the ones we’ve already been familiarized with for quite some time now and focus on Pinterest. To be perfectly honest, at the beginning I didn’t give this network any faith. I wrongly thought it would be just like any other social network and their 15 minutes of fame. However, Pinterest has achieved in images what Twitter has in text. This image collection is so simple to use, that Tech Crunch has pronounced it the third most important social network (I believe the first two are obvious) in so little time.

Pinterest is really more about the branding connection it can offer to companies rather than any other strategy, but nowadays branding per se takes a large piece of the strategy pie.

Now, as an entrepreneur or strategist, which do you prefer? Apps or Social Networks? Why not have both?

Whatever Happened to Phones?

No, really, whatever happened to phones? When was the last time you used your home phone or even your office phone? Unless you really are a telemarketer or talk to your relatives via prepaid card on the phone, I’m willing to bet that was a really long time ago.

Everyone uses either Skype for much cheaper calls or their cell phones — which by the way aren’t used to make a lot of calls anymore–. Granted, there are still a couple of dozen calls to be made from the portable little devices, but as you may have figured out by now, you check your e-mail, social updates and somewhat still text. All those, even if singled out, out match voice calls by far.

Even preteens abuse their cellphones typing away text messages as if they were given candy for every one they send out. Gossip-Girlying it out by taking pictures and uploading them to Facebook or some other online community.

Alexander Graham-Bell may be didn’t even remotely imagine eventually his work would be nearly obsolete. It was though, a major stepping stone to something bigger, more global, and much more practical. So type away people, we’re getting good at typing on small keyboards (we even keep our nails tightly cut to get faster at it!).