20+ Considerations on The Future of Web Hosting, Website Builders & Digital Marketing Beyond 2020

This post originally appeared at 20+ Considerations on The Future of Web Hosting, Website Builders & Digital Marketing Beyond 2020 via ShivarWeb

Considerations on The Future of Web Hosting, Website Builders & Digital Marketing

There has never been a time when running a website has been more accessible, convenient, and profitable than now.

But there has also never been a time when running a website has been so confusing, frustrating, and winner-take-all than now.

And that contradiction comes because some of the major computing & networking innovations from the 2010s are finally coming to the everyday Internet.

And as the 2010s close out and the 2020s begin, here are some of my considerations (in no specific order) that I think would be useful for DIYers, freelancers, small online business owners, and anyone planning an online presence.

Nobody Fully Knows What Is Going On

This post is deliberately a listicle because I don’t have a grand unified idea about the future of running a website on the Internet. And I’m skeptical of anyone who does.

Cloud computing, machine learning, APIs, high-quality open-source software, free toolkits, mobile devices, streaming, and the lumbering giant behavior of Google, Facebook, Amazon, Apple, and Microsoft all point to continuing massive disruption of entire industries that no one can predict or prepare for.

The Website + Marketing Tool Model Is Gone

For years, people built a website on a multi-purpose host with a custom domain. And then they used 3rd party tools & distribution channels to promote content, products & services that lived on the website.

But now, the website on a domain is simply one tool in a toolkit. In fact, you can build a model where your website is a backend for your other marketing tools…or you can use a marketing tool to build & run your website.

This shift is clearest with online stores. Between Buyable Pins, Checkout on Instagram, Amazon integration, dropshipping APIs, offline pop-up shops, etc – the website is just another piece in the business puzzle.

Now, websites are still critical because they remain the only piece of that puzzle that you can control & own as an asset. But…I do think they are losing their relative importance. And their importance depends massively on what industry you are in.

Platform Choice > Tool Choice

The demise of the website + marketing tool model will mean that website owners will choose their platform of choice rather than their tools of choice based on what business they have.

Online retail is in this place already. Very few successful retailers have a collection of tools. It’s all about integrations and platform. But increasingly, every business sector will move to this model.

Local small businesses will look at platforms that do their primary function plus whatever integrates well with that platform. For example, a website builder will not compete with other website builders. Instead, the website builder will compete with the CRM platform and the email marketing platform…because all three will have a website builder, CRM, and email marketing tool bundled in a single platform

In other words, a website builder like Wix no longer competes with Squarespace. Instead, Wix competes with MailChimp and HubSpot and Google.

In online retail, Shopify and WooCommerce and BigCommerce don’t really compete with each other. They all compete, as a group, against Amazon, Instagram, Depop, MailChimp, Square, Salesforce, and eBay.

In hosting, hosting companies no longer compete with each other as much as they compete against Google Business Suite, Hubspot, hosted website builders, etc.

Now, there will still be incredible power & opportunity for website owners who have the resources & wherewithal to mix & match services to get the best of all worlds. Those website owners will be able to maintain costs and control where others will cede more power to their platform of choice.

Convenience Killed Cost & Control

The big reason why DIYers are a declining & disrupted market is that when consumers distill down what they truly care about – convenience always wins.

The same reasons driving the growth of takeout, restaurant, delivery, and meal kits at the expense of cooking are also driving the growth of online platforms at the expense of websites + tools.

If you are a DIYer, it will pay to be hyper-aware of what your true wants, needs and goals are – and what tradeoffs you are willing to make. Platforms are great in many ways, but beyond 2020, the most successful DIYers will be able to manage the tradeoffs of platforms.

If you are a freelancer, it will lead to bigger rewards to both specialize in a platform and maintain familiarity with how adjacent choices work. Even if your clients do not know about or understand platform choices, you can still use them to streamline your business and add value without adding extra work.

Spam, Security & Speed Killed What Could Have Been

I am a huge fan of the Open Web. Regardless of the short-term rewards of the platform of the day, it’s still worth investing in a website for the long-term.

But in 2020, even the most die-hard prophets preaching against Google, social media companies, cloud computing, hosted builders, and big corporations will have to admit that the vulnerabilities in the Open Web & running / managing your own website are pushing people to big platforms as much as those big platforms are pulling people.

For example, Google might be pulling people & businesses to hand over their personal email & confidential documents. But hackers, spammers, and human impatience are doing plenty of pushing as well.

For example, I would *love* to run conversations via blog comments instead of using Twitter. But my blog comments are like an absolute honeypot for the worst of the Internet.

Another example, I would love to avoid ecommerce transaction fees and SSL fees but hackers only need one shot. Security is difficult and, honestly, much more effective to do at scale across thousands of websites.

Most of my clients gain a lot from controlling their own hosting rather than using a hosted website solution. But I have to set expectations to prep clients for the amount of time & money it takes to keep the site secure & speedy beyond using a solid hosting company. Web visitors will absolutely ditch a website in a heartbeat over a millisecond. That’s why so many publishers with massive brands are blindly handing control over to Google’s AMP initiative. Even the biggest brands in the world can’t compete with human impatience.

Traffic Sources Are Consolidated & Fragmented

Facebook’s properties & Google’s properties will continue to become bigger. But they’ll also become more winner-take-all. But also, a much longer tail of random completely unpredictable traffic sources will continue to fragment.

Even more traffic will be “dark” or untrackable. Planning a marketing strategy will increasingly rely solely on your target audience rather than your target traffic source.

Organic Traffic Is A Bonus

Treat any organic traffic from Google, Facebook, Pinterest, etc like a bonus. You can’t project or plan long-term around organic traffic. Agencies, freelancers, etc will have to adjust pricing and clients will have to adjust expectations.

Digital marketers spent years making fun of John Wanamaker old-fashioned quote that “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.”

Online attribution was supposed to solve that problem. But now, no matter how creepy your tracking and attribution is…consumer & traffic behavior is so unpredictable that you won’t be able to truly plan long-term…unless you pay.

Marketers Growth Demands Killed What Could Have Been

More and more platforms & websites will be “walled gardens”* due to pressure to grow…and grow…and grow some more. The Web could have been a world of accessible, free-flowing information where many businesses and types of businesses made a living. But platforms have to be more closed to make more money off users. And as valuable traffic has declined, website owners have become more desperate and more annoying to drive up ad rates.

*Even previously open platforms like Reddit, Pinterest and Twitter are closing in.

For example – see basically every recipe website ever. As Google and Pinterest strive to keep more users on their sites, serving their ads…recipe content websites have become more desperate to monetize what little traffic they do have…leading to horrendous car salesman-like levels of unusability.

Users Killed What Could Have Been

Users want convenience above all. For all the pulling that Google, Facebook, Pinterest, Amazon, etc are doing…users are also pushing attention there…because it’s convenient.

For example, I have no idea what to say to website owners about voice search. And anyone who does have a “strategy” for voice search – I call B*S* on. Users want it. I want it. It’s amazing, but you can’t build a publishing business or profitable content marketing strategy around it.

1,000 True Fans Is Still True

That said, the future will always have a small, tough, but sustainable spot for Kevin Kelly’s 1000 True Fans.

On balance, there has never been a better time to run a website or online presence than right now. If you have a good product, service, or concepts, there are likely 1000 True Fans that can & will support your work. Sure, there were “Golden Ages” of organic Facebook traffic, organic Google traffic, etc…but those eras had serious issues and limitations as well.

There Is No Magic Bullet

There is no sure-fire way to build a successful website. I’ve been working in digital marketing for years now. I know that in SEO, there used to always be a sure-fire tactic that was working. Now, there are tactics that work marginally better than others. There are things that you can focus more or less on…but the magic secrets are gone.

Same goes with Facebook, Pinterest, Reddit, etc. The only real magic bullet now is hard creative work, constant research, careful planning, constant learning…and a whole lot of luck.

Opportunity Costs Are Very Real

When you choose to do Action A instead of Action B, there is the cost of doing Action A plus the cost of *not* doing Action B.

In a world of limited marketing resources, choosing to create social media posts means that you are also missing out on *not* creating blog posts.

Back in the world where everything online was growing, you could afford to miss one big opportunity for another…because most every opportunity was growing.

Now, mobile devices are ubiquitous. Desktop traffic is actually declining. And many social networks have reached maturity. Choosing one over another or bouncing around chasing “shiny objects” has real costs above whatever you are paying for your main investment.

Even with aspects of running your website, many website features are standardized and predictable. There are opportunity costs to choosing what part of your site to improve or leave alone.

Lookalikes Killed Privacy

I wrote a guide to tracking marketing data on your website. I actively use any & all data to help clients & aid my own research. But on this website & my personal website, I’ve deliberately removed all tracking tags except for Google’s. Why?

Well, sure, there’s the token virtue and hand-washing hypocrisy part of it.

But also, I found that my own retargeting & tracking did not matter in comparison to the massive opportunity presented by lookalike audiences and the data gathered by the big platforms.

Because here’s the thing about “big data” that people miss. It’s that individuals do not matter. All that matters is the sample size.

Every single person has a lookalike about some part of themselves. No matter how special or unique you think you are; no matter how carefully you avoid trackers or cookies or online ads, you can be personally marketed without any kind of tracking to due to lookalike audiences.

Here’s an analogy. Think about the world of DNA testing & genealogy. There are real fears & real consequences to having your DNA in a database. But protecting your own DNA is near-pointless. If a company (or government) knows the DNA from a couple cousins or aunts or uncles or grandparents or a sibling…then they know yours as well.

Lookalikes are the same. Even if Nate Shivar avoids all retargeting trackers, there are still enough people out there similar to me that will allow marketers to reach me if they want.

So – what does this mean? It means that whether you have a large audience data set or not, you can still think creatively about how to profile & reach your audience.*

*that is – until privacy can get solved in a meaningful way. Be sure to tell your political leaders that this needs to be solved at the national / international level. Individual choice & freedom in this issue is a moot point.

Alternative Channels Matter

In investing, modern portfolio theory says that diversification pays for itself because it maximizes expected return even if it fails to maximize actual returns.

In other words, you may know that Investment A is your best bet. But you should still make Investment B as well, because you can’t be sure that Investment A will be amazing.

Same with traffic sources and alternative channels and even website tools.

You may be pretty sure that your priority is the right one. But in a world of uncertainty, alternatives are good to have.

Now – going back to Opportunity Costs Are Real – you have to be honest with the tradeoffs. If you spend time on YouTube in addition to Google Search, you might lose some in Google. But you also won’t lose it all if you have some investment in YouTube.

Web Hosting Is a Utility

Amazon made the technology of hosting files a commodity service. Web hosting companies no longer compete on technology. In fact, they don’t want to compete on technology…because Amazon / Microsoft / Google win on that. Web hosting companies make money on what they provide in addition to basic hosting.

That can include support, onboarding, graphical server management tools, bundled 3rd party services, etc. But the main point is that if hosting is a utility – then anybody can offer it as a feature…not just web hosting companies.

There will be even more plugin makers, software makers, theme designers, tool makers, etc that will simply bundle & resell hosting as a feature.

Website Builders Are a Feature

I remember when I used my first drag & drop builder in the early 2000s with Homestead. It was a “WYSIWYG” builder. And it was terrible. Actually, every WYSIWYG builder was terrible…until just a few years ago.

Now…developer and marketer snobs will turn their nose up at drag & drop…but the software is actually pretty good….and it’s only getting better.

If drag & drop were microwavable pizzas in the 2000s, they became Domino’s in the 2010s…and now they are more like Mellow Mushroom pizza. Nothing like your local sit-down Italian haunt…but consistent and really solid.

All this means is that the core website building software can be a feature bundled with everything else rather than a stand-alone business. That’s why Google, MailChimp, Shopify, HostGator, InMotion, GoDaddy, and a dozen other non-website builder companies are bundling free website builders that otherwise compete directly with Wix, Squarespace, Weebly, etc.

SEO Is a Tactic

For years, the “contract” between publishers and Google was that Google gets to copy & analyze copyrighted content in exchange for free organic traffic.

If publishers made their content easier for Google to copy & analyze (i.e., “search engine optimization“), then Google would reward them with even more free organic traffic.

It created a virtuous cycle that worked for everyone. Sure, Google had to deal with publishers who took advantage of loopholes. And publishers had to waste some time dealing changing guidelines and features (remember Author markup?).

But on whole, the deal worked for everyone.

In fact, you could build an entire marketing strategy around the deal. That’s how entire businesses got built. Help Google and they’ll help you.

But, that deal has broken down. As Google focuses more on users and advertisers – publishers will get left out more and more. And as SEO as a strategy goes away, it will really only remain as a tactic in a broader strategy of organic traffic from all the places.

IRL Original Content Is Underestimated

The Internet makes copying & sharing more convenient than ever. In fact, it’s so convenient that we often forget that there are other sources of information in the real world.

But even more so, we forget that information in the real world is the source for information on the Internet.

In fact, this instinct is true not just among social media users but also among serious website owners and professional journalists.

Because of this instinct for convenient & copyable information – there is a growing premium on original information gathered from the real world.

Anyone can get a screengrab from Google Earth. But not many people will take a picture of a location. And which is more useful & unique?

Anyone can get a screengrab from social media…but not many people will go an compose a proper photo in context. And which is more useful & unique?

Anyone can make a drawing or an illustration…but not many people will make an IRL video or photo sequence. And which is more useful & unique?

On my websites & my clients’ websites – I am continually amazed at how often original, IRL images get copied, cited & linked-to. It’s amazing.

It’s no magic bullet, but it’s the most magical of all bullets that SEO’s & website owners have.

IRL Data Is Underestimated

On a related note, data copying and analyzing is easy. IRL data gathered from real people is harder and harder to gather and share.

That’s what makes the US Census so invaluable. But that’s also what makes companies’ internal data so valuable and why some companies use it for incredible link building & PR efforts.

Above & Beyond Pays Off Even More

Regardless of hosting platform, marketing toolset, marketing strategy or collection of tactics – going above and beyond the competition will provide winner-take-all dividends.

Onward!

The Internet & globalization continually push towards sharper and sharper winner-take-all markets for money & attention. And they also increase the long-tail of choice. And technology is continually disrupting itself. Until those core forces are fully understood, you have to play the game.

Focus on using products that you understand and match your goals. Focus on marketing strategies based on audiences that you understand and match your financial goals.

Onward!

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