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Perhaps I am wrong about this, but it was my impression that increases in internet advertising revenue were mainly based on increased volume, not higher prices.
by 03pxkexce5 10y ago
Perhaps I am wrong about this, but it was my impression that increases in internet advertising revenue were mainly based on increased volume, not higher prices. I don't see any reason volume should drop when more and more consumers are using the internet and spending more time on it.
- lvs 10y agoConsumers don't buy advertising. Companies do. Consumers don't want advertising at all, and they don't really understand that all their tech products/services are subsidized by ad revenue. Would they pay recurring fees for those products/services without an ad subsidy? Some would, but most won't. So if and when companies (that actually produce something) decide that their investment is better spent outside of search and social media, and if consumers don't then fund those products directly, it will be like an earthquake in SF. This is exactly what happened to newspapers, by the way.
- 03pxkexce5 10y agoInternet advertising spending replaced newspaper advertising. What is going to replace internet advertising? VR? Those ads will probably still be sold by FB and Google. To me, Google and FB's PE ratios are sensible, taking into account current profits, continuing growth in the short and medium term, and uncertainty in the long run.