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I'm not an economist, just some random techie. I don't think you can lump all of GAMA together. I think that Meta and Twitter which rely almost entirely on ad
by GianFabien 4y ago
I'm not an economist, just some random techie.
I don't think you can lump all of GAMA together. I think that Meta and Twitter which rely almost entirely on advertising revenue are the most vulnerable. Google with some products and Apple with several products should be less vulnerable. Amazon covers several niches: distributor, advertiser, web services, so they are probably facing numerous challenges in the future.
If the headwinds in the near future intensify, then I suspect that advertising spending will reduce and thus any business that sustains itself purely on advertising revenue will have serious problems.
- mtberatwork 4y agoWhat headwinds? The Western world is a consumption driven society (with the US being an extreme version I would say), so I don't think advertising/PR spending will be reduced, just transferred from one focus to another. The businesses that are driven by ad revenues will pivot to wherever the ad dollars go.
- jmoak3 4y ago>so I don't think advertising/PR spending will be reduced I disagree, if consumer spending is reduced due to less equity valuations or less overall liquidity, then the ad spend will follow. A recession could easily bring this about.