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Speculation On a Second Internet Economy Collapse

Posted by kdawson on from the put-down-that-pin dept.

David Barrett writes "If you sell three billion ads a month and can't break even, what do you do? Drop prices by 40% and switch business models, apparently. Is this an isolated incident, or does it contribute to the growing pile of evidence that ad inventory is overpriced industry-wide, with Google being the worst offender due to its policy of requiring minimum bids on keywords that would otherwise go for cheap? Check out this analysis on my blog and make up your own mind."

6 of 307 comments (clear)

  1. All that SOAP by hostyle · · Score: 5, Funny

    Bubble 2.0. The burst is coming. See it live on slashdot.tv.

    --
    Caesar si viveret, ad remum dareris.
    1. Re:All that SOAP by Yvanhoe · · Score: 4, Funny

      Surely the best place to witness it would be on Google Video

      --
      The Wise adapts himself to the world. The Fool adapts the world to himself. Therefore, all progress depends on the Fool.
    2. Re:All that SOAP by __aarcfd8085 · · Score: 5, Funny

      *picks up sandwich board and placard*

      "the version release is nigh! repent, ye users of keyword searchs for the saviour: syntactic web 3.0 will cleanse you of spam"

    3. Re:All that SOAP by elrous0 · · Score: 4, Funny

      Not for much longer.

      --
      SJW: Someone who has run out of real oppression, and has to fake it.
  2. Re:Wish there was a "Free market" advertising syst by draxredd · · Score: 4, Funny

    free market means one can establish a new business in said market. NOT that established business shouldn't set their own price for the service they are selling.
    Go ahead and establish a more efficient service than google's... but wait, what would be your interest in driving prices down, once you'll be the dominant player ?

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    --- Back to the trees, back to the trees !
  3. Other Industries Prosper on the Internet by ehaggis · · Score: 4, Funny

    "The first internet bubble popped largely because all business models failed except for ad selling." (from the article).

    I disagree. Pornography and Gambling as well as on-line RX have proven to be profitable over time. Perhaps the monetary profit margin is inversely related to the moral and cultural benefit to society.

    --
    One ring to bind them - should probably have more fiber and less rings in their diet.