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Always good advice to budget and prepare for the worst, but wow this is a big stretch from the article. Of the large salary companies - Amazon, Google, and Mic
by jimhi 4y ago
Always good advice to budget and prepare for the worst, but wow this is a big stretch from the article.
Of the large salary companies - Amazon, Google, and Microsoft are in the cloud space. Google doesn't make most of its profits from cloud. Netflix and Facebook don't sell these services at all. Dropbox and Digital Ocean (and sort of Cloudflare) are also in the cloud space and aren't known for such salaries.
It's possible everything is in a bubble from the low interest rates. My prediction is Adtech is far more likely to be in a bubble than cloud computing. The productivity gains and small number of people who can fill the role for cloud are going keep it dominate probably for a long time even in a recession.
- _fat_santa 4y ago> My prediction is Adtech is far more likely to be in a bubble than cloud computing. It's always so hard to nail down AdTech, to the outsider it seems like a world filled with bots and bad data and fueled by FOMO. Probably a good chunk of Google's revenue comes from companies that don't really need to advertise, but do so anyways so they won't loose their "competitive edge"
- r0m4n0 4y agoWhat makes you think adtech is in a bubble? I only ask because it is has been around for a few decades now, has steadily been on an incline while old advertising methods has slowly been on a decline. Those trends are more likely here to stay… The pandemic fueled weird economics everywhere but I don’t think we will see falls below pre-COVID
- jimhi 4y agoStartups have to show growth and/or revenue. They dump most of their funding into advertising. Many are spending more than the lifetime value of their customers (if that can even be calculated at their stage at all). Interest rates go up -> VC Money goes down -> Advertising budgets go down Online advertising is "theoretically" better than other advertising. You can track exactly how it converts to sales or not. It is still the best way to advertise in my opinion so will beat out any other method for sure.
- r0m4n0 4y agoInterest rate increases are causing money to move around for sure. I’m just not convinced startups are the primary buyer of these online ads. Hell I would barely even consider them a drop in the bucket. Im sure basically every Fortune 500 and brick and mortar store have hefty online ad spends now a days. I suppose we will see soon enough
- jimhi 4y agoTrue - that's my guess anyway
- Macha 4y agoYeah, this isn't the dotcom era when internet ads was mainly startups buying ads on Yahoo thereby inflating their own value and Yahoo's value. The standard online advertisers are the standard advertisers these days (apart from a few smaller islands like podcasts or integrated sponsors on youtube), so it'd be a bigger recession to impact adtech, and the impact there is more likely to be in line with the impact to the rest of the economy than disproportionate popping.
- moris_borris 4y agoLast year I worked as a dev at an ad tech firm that apparently had a money printer. The amount of waste, particularly in their cloud architecture, was staggering. Prestigious office in a very expensive city. I noticed that they hired from big-name companies known for being staggeringly wasteful like Uber. Just one company, sure, but it did make me wonder about adtech in general.
- ramesh31 4y ago>Just one company, sure, but it did make me wonder about adtech in general. The margins are so insane that it just doesn’t matter. They are trading engineering time for time to market.
- crmd 4y agoEvery square inch of the tech sector has been inflated by the past 14 years of almost free capital.