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honestly an advertising bubble is terrifying to me. most of the major tech companies revenue is generated from advertising and so are many many many other tech
by jtmcmc 9y ago
honestly an advertising bubble is terrifying to me. most of the major tech companies revenue is generated from advertising and so are many many many other tech companies and then a huge number of companies which AREN'T advertising make their money selling to advertising companies.
If the bottom drops out of advertising we will have mass death of tech companies
We will also have a massive VC funding freeze as they aren't going to want to fund companies that don't have a non advertising framework for revenue and neither I nor anyone I think really understands how to fund most b2c tech companies outside of advertising (yes there are some solutions but they are so much less effective than advertising)
So yeah I find this pretty terrifying. It will probably be way worse than the 2001 bubble because the amount of the economy that depends on tech advertising now is much much greater than the amount of money invested in tech in 2001
- adventured 9y ago> most of the major tech companies revenue is generated from advertising Uh, no. Apple, Microsoft, Cisco, Oracle, Intel, Qualcomm, Netflix, Amazon, IBM, Texas Instruments, nVidia, Tesla, SpaceX, Uber, Airbnb, PayPal, Priceline, Broadcom, HP, Dell, VMWare, Symantec, Intuit, Adobe, Salesforce, Tencent, Didi, SAP, Amadeus, Workday, Micron, HP, Foxconn, Huawei, Samsung, Sony, Panasonic, Taiwan Semiconductor, Hitachi. And on and on the list goes. VS: Google, Facebook, Alibaba, Baidu, Twitter, Snapchat.
- jtmcmc 9y agoSo tech I meant colloquially to mean software tech. The overwhelming number of companies you listed there are hardware companies which would also suffer significantly considering the amount of hardware good/fb/etc... Use. Amazon would also be hurt considering they are getting massive revenue from software companies. Also companies like Adobe would be massively hurt (say bye to their marketing analytics platform) and the fact that significant creatives use their products for advertising. Companies like Oracle and Salesforce I would bet derive a significant chunk of revenue selling advertising and marketing analytics services as well. Regardless of pedantry olad cratering would be a huge huge huge fucking deal for many people who work in software (at least).
- paulie_a 9y agoA massive VC funding freeze to support advertising companies would be a good thing in my opinion. Otoh ad companies will just become even more scummy. I am not sure how that is even possible, but there is probably a start-up trying to figure out how