Eyeballs and Revenue Debate

The New York Times in its weekly What’s Online picked up the hotly debated issue of Eyeballs versus Revenues, as sparked by my Business 2.0 story, Return of the Monetized Eyeballs, and Jason Calacanis’ reaction to it. (Here is what Jason has to say in depth.)

I have abstained from saying anything because Erick Schonfeld did a great job over on the Business 2.0 blog, explaining the issues.

The value of an advertising-based Website is directly related to the size and quality of the audience it can attract. And barring the Weblogs of the world and other private companies giving us their revenue figure, we are stuck with measuring what we can: eyeballs and acquisition prices.

There were others like Ian Bell, and David Newberger , and my editor on the story, Andy Raskin weighed in. Like Jason a whole bunch of people disagreed. Regardless of what you might think of a “box item” in a much larger story, which I urge you to read, it is clear that the content, and by extension, eyeballs are back.

Jeremy Wright says, “There should be dozens of metrics used in any deal (whether it’s thousands of dollars or millions). Eyeballs will be one of those, just like revenues, just like visibility, just like overall growth.”

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