Infographic: The average consumer spends $50k/year. Where does it all go?

I think it's common that people feel an affinity for starting businesses in the consumer sector. It's relevant to one's daily life. There's broad appeal. There's easy understanding of the needs, because we ourselves are consumers too.

Given that, this turns out to be a very valuable piece of data. If you want to make consumer services of any sort, you need to know how the pie is being sliced.

Tagged gets nailed for being overly viral/spammy. They stepped over the line.

This very virulent form of spam is the online equivalent of breaking into a home, stealing address books, and sending phony mail to all of an individual's personal contacts.
NY Attorney General Andrew Cuomo, talking about tagged.com, via independent.co.uk

Looks like a lawsuit and fines are in order.

No tears from me here. Tagged went over the line of decency when it started directly misleading users into spamming all their address book contacts.

Not all ads are created equal. Punch-the-monkey display ads might work for you.

We discovered that people who liked those “punch the monkey ads” are people who don’t really get the internet, are scared of the internet, and probably a lot of them are parents who just got their AOL accounts.  That traffic is really cheap to buy. And it turns out there were really high convert rates for us, for the product that we were selling.

Interesting tip: punch-the-monkey display ads are in high supply and low demand these days.

If your product can convert these novice users, then awesome!

There was a time when display ads were all the range. Who knew they would be the cheaper commodity compared to Google Adwords now?