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I see a causation here, too, but not universally. Websites running on unpaid open source software, monetizing trough ads or SaaS services for bigger VC-funded o
by allendoerfer 12y ago
I see a causation here, too, but not universally. Websites running on unpaid open source software, monetizing trough ads or SaaS services for bigger VC-funded online startups just postpone the point where money is made.
It is therefor critical, that these funded startups provide an additional service for consumers to buy (growing the economy) or disrupt another industry. If they are financed by advertisement and the spending does not originate from former TV advertisement and they are growing faster than other non-advertisement B2C parts of the economy, they are effectively lowering the profitability of other advertisers or their customers.
I am not an economist so I do not know if decreased profitability of advertisement spenders causes an economic collapse, especially with falling manufacturing costs. What is clear in my opinion is, that if said funded players can not get their customers to decrease their profitability and the industry has to lower their prices instead, it will affect the whole tail of B2B and ads-based companies that provide services almost exlusively for them.