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What specifically are fads? Mobile app install ads or mobile video ads? Extremely unlikely. That market will only continue to grow as consumption on mobile cont
by vecter 11y ago
What specifically are fads? Mobile app install ads or mobile video ads? Extremely unlikely. That market will only continue to grow as consumption on mobile continues growing. Ad money goes where the eyeballs are, and the eyeballs are moving to mobile. You are wrong, this is not a fad.
- marcoperaza 11y agoThe high valuations for these companies can only be explained by the expectation that they will maintain their market-share for years to come. But the fact that they're willing to throw so much money at buying out the competition is, to me at least, a red flag that their market position is actually fragile. When Facebook bought Instagram for a billion dollars, they weren't interested in any of Instagram's engineers, technology, or infrastructure, just in defending market-share. Other than for the bad optics, everyone at Instagram could have retired shortly after the deal for all they cared. The threat was eliminated. This isn't a sustainable practice. I can't help but feel the whole thing is a game of hot potato. Greater Fool Theory in action.