The Super-aggregators
Ben Thompson of Stratechery writes of Facebook & to a lesser extent Google’s model here: What makes Facebook and Google unique is that not only do they have zero transaction costs when it comes to serving end users, they also have zero transaction costs when it comes to both suppliers and advertisers. An interesting way to think about it; Facebook’s suppliers are its users, since they produce the content; this attracts and retains other “suppliers” - you and me, the friends of those on Facebook, and in turn that gives Facebook its “product” that it sells to its market, the advertisers. ...