A New Google: Why Content is King

Jul 26, 2023

4 min read

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In the ever-evolving landscape of technology and the internet, it's important for companies to find their niche and establish themselves as a force to be reckoned with. One way to do this is by focusing on a specific vertical and building a platform that excels in that area. This is what Google did back in 2000 when it emerged as a superior search engine compared to its competitors like Lycos and Excite.

However, as the saying goes, "Come for search, stay for something else." Google's success wasn't solely based on its search capabilities. It became a part of people's daily lives because it offered something more. This is a key question for any company looking to challenge Google's dominance – how can they build habitual recall and make users choose their product over Google?

One solution lies in the concept of community. By creating a platform that not only serves as a search engine but also offers something else, companies can capture the attention and loyalty of users. This "something else" could be anything from travel recommendations to code tutorials or even a marketplace for electric products. The idea is to make the search app a destination for a specific vertical, providing users with a comprehensive experience they won't find elsewhere.

But why is content so important in this equation? It's because content has the power to create strong moats for businesses. Just as broadcasting created real money on the internet, great media businesses have the potential to do the same. There are several reasons why content is king:

Scale Economies: The bigger a company gets, the more it can invest in creating high-quality content. This, in turn, generates more cash, allowing for further investment in quantity and quality. Companies that prioritize research and writing tend to outcompete those that only allocate a few hours a week to content creation. While low-budget winners like Joe Rogan and Blumhouse exist, they are the exception rather than the rule. Most successful media brands aim for quality and develop creative ways to reduce the risk associated with producing high-quality content.
Network Economies: Network effects are often associated with communication platforms like Facebook and YouTube. However, narratives can also have network effects. When people share experiences, it creates a sense of belonging and mutual understanding. Each new unit of content becomes a unit of culture that, when popular, becomes woven into the fabric of society. This is why content with a potential to connect with many people should be amplified and extended, rather than diluted with unrelated content. Building a skyscraper, rather than a strip mall, is the way to go.