The new dot com bubble is online advertising (2019)

This sounds great and I want to believe it, but it feels like another case of someone saying the sky is falling when it clearly hasn't. What will it take for this advertising bubble to pop? Is it even a bubble?

Re: The new dot com bubble is online advertising (2019)

#5

Post by cubano » Sat, Oct 02, 2021, 2:53 AM UTC

Meet the new boss.

Same as the old boss.

Re: The new dot com bubble is online advertising (2019)

#6

Post by missedthecue » Sat, Oct 02, 2021, 3:02 AM UTC

kbrackbill wrote: post #4

This sounds great and I want to believe it, but it feels like another case of someone saying the sky is falling when it clearly hasn't. What will it take for this advertising bubble to pop? Is it even a bubble?

Funnily enough, the ad based tech companies have the most reasonable stock prices. Facebook and Google are massively profitable, still growing at double digit rates, and each have only mid twenties PE ratios (the same as Caterpillar Heavy Equipment, or electric utilities like ConEd and PG&E).

Meanwhile there are companies out there like Lordstown Motors, Lucid, and Nikola, which have never sold a product but have billion dollar market caps. Nikola is universally known as a fraud, somehow has negative revenue, and is still worth $5 billion. EVs are the real bubble.

Re: The new dot com bubble is online advertising (2019)

#7

Post by klyrs » Sat, Oct 02, 2021, 3:05 AM UTC

slater wrote: post #2

6 November 2019

Wild. From the title I was guessing 2008.

Re: The new dot com bubble is online advertising (2019)

#8

Post by amusedcyclist » Sat, Oct 02, 2021, 3:06 AM UTC

I don't think you can build a new consumer facing business without advertising on facebook and google. A lot of the moden consumer internet was built by advertising on those platforms and diverting dollars away from brick and mortar. Some well known examples include Airbnb and all the kardashian family brands. Advertising metrics might be hard to measure for large well known companies, but for startups/ solo entrepreneurs the numbers tend to be much clearer.

Re: The new dot com bubble is online advertising (2019)

#9

Post by rsync » Sat, Oct 02, 2021, 3:09 AM UTC

It's an idea that just won't die ...

If we concatenate enough garbage: (subprime loans, training inputs, consumer information)

then the result: (MBS tranches, AI, targeted ads) is somehow not garbage.

This appears to be a wonderful model for separating gullible investors from their money so I suspect we'll keep seeing new incarnations of it ...

Re: The new dot com bubble is online advertising (2019)

#10

Post by rossjudson » Sat, Oct 02, 2021, 3:11 AM UTC

amusedcyclist wrote: post #8

I don't think you can build a new consumer facing business without advertising on facebook and google. A lot of the moden consumer internet was built by advertising on those platforms and diverting dollars away from brick and mortar. Some well known examples include Airbnb and all the kardashian family brands. Advertising metrics might be hard to measure for large well known companies, but for startups/ solo entrepre…

Ultra-clear for small businesses, at times. I was once a partner in a shop, and there was that time that we had a account problem/billing error on the credit card, and all the advertising stopped for the better part of a month. Worst month ever.

The whole article reads like something the author wishes was true, but that's predicated on the notion that everyone buying advertising is just stupid.