What Numbers to Trust

October 18, 2006 |

BusinessWeek magazine: The most-read source of global business newsBusiness Week uses the example of Meebo to examine the dark secret of every internet company: they don’t even know their user numbers themselves.

Web Numbers: What’s Real?

The dirty little secret of Silicon Valley is that no one knows exactly who is going where on the Web. That flies in the face of the impression that online advertising is the most dependably trackable ad medium of all time, a big reason spending on Web ads is expected to grow 33% this year, to $16 billion. But confusion over traffic measurement could cast a chill over the Web 2.0 craze. Valuations for startups such as Facebook Inc. and YouTube Inc. appear to be doubling every few months, but those numbers are based on traffic figures that could be misleading.

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