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I get downvoted whenever I propose digital advertising bubble will pop once people wise up to the fraud.
by specialist 6y ago
I get downvoted whenever I propose digital advertising bubble will pop once people wise up to the fraud.
- lern_too_spel 6y agoThe ad buyers aren't smart enough to measure the actual effectiveness of their ads, and the ad sellers are not incentivized to teach them how to do it. This can go on for an arbitrarily long time.
- choward 6y agoI think the next major recession is going to be triggered by this bubble popping.
- missedthecue 6y agoWhy would it cause a recession? Google and Facebook would report lower numbers, literally every other company on earth would save more money.
- specialist 6y agoIDK. It's a risk worth chewing on. eg If Google and Facebook tanked, bringing down the stock indexes and all the institutional investors, triggering a sell off... What would the knockon effects be? I don't know (no clue). The 2008-9 crisis largely happened when CDS stuff popped. Is there a similar house of cards on top of FAANG stocks or the digital ad market or...?
- missedthecue 6y ago2008 was bad because of excessive leverage. Top tech companies have little to no debt and there aren't any leveraged securities to do with ads.