We’re almost running out of ways to say it, but here goes – Gizmodo’s iPhone 4G story will go down as one of the biggest gadget scoops in the annals of tech history. The story did gangbusters for Gizmodo, easily quadrupling their daily traffic from 5 million pageviews to upwards of 20 million. Ethical considerations aside, most people assume that surge in traffic and attention directed at Gizmodo has the Gawker network raking in the dough hand over first.
But according to Gawker Media owner Nick Denton, that’s not exactly the case. According to Denton, Gawker is not only not making any money off their scoop, but is actually losing money.
“There were no immediate revenue benefits whatsoever,” Denton said, “in fact, only costs.” Denton explained that Gawker paid an extra $7,000 in bandwidth costs to support the onslaught in traffic, and that Gawker will dole out presumably substantial traffic bonuses to a number of Giz writers who saw a number of their iPhone 4G related stories generate an insane amount of pageviews. Also a factor, Denton says, is “whatever legal bills we end up paying.” And oh yeah, you might want to factor in the actual cost of purchasing the iPhone 4G in the first place – 5 grand.
Denton, though, is being a bit coy in his analysis. While Gizmodo undoubtedly incurred some short term costs, their scoop was an investment that will pay off with all the extra attention and traffic Gizmodo can expect to receive going in the weeks and months to come. You can’t put a price on global publicity, and Giz’s iPhone scoop catapulted their site into every major newspaper and news program across the world. You simply can’t buy that kind of publicity.
Short term costs? No doubt. Long term gain? You better believe it. Otherwise, there’s no way a man as savvy as Denton would have purchased the iPhone in the first place.
via Daily Finance