An interesting article from TimesOnline (the UK times) about the "Death Of Google" I thought I comment on it as follows:
In 2002 Joe Schoendorf from Accel venture predicted at a high level executive briefing a bubble burst even bigger than the one in 2000 - just not knowing when and why.
Maybe the Advertising Industry Bubble? The Google meltdown would be just a tiny side effect. But the close to 1 trillion $ advertising industry is a bubble. And it's burst will indeed dwarf the Internet bubble burst.
Here is why:
Consumers and corporate buyers alike not only ignore but avoid advertising - the producer still ramps up to catch at least some business. And still millions of VC $ flow into new advertising networks. But the day we realize that even by offering $1 Million to a person to only remember 10% of the adds that person saw in one month (over 1,000 on average per day) ...
That bubble will burst and faster than any before for a very simple reason - lake of economic benefit.
The advertising industry meltdown will happen and Google is only one victim.
Thursday, April 17, 2008
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1 comments:
I agree. It will burst at the latest when the 'VC envisioned' add revenue exceeds the revenue of consumption of actual products and services (how far are we off of that? ;-). I 'predict' it will happen much sooner... ahem, does that make me an industry expert... :)
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