Good news for MBAs with lots o debt. The Shakeout Begins Those of us who pay attention to the market, and that s just about everybody these days, have watched the Internet stock bubble with a mix of awe and fear. The joy, or jealousy, created by these stocks meteoric rise is tempered only by the fear that they will come crashing down soon, taking the market with them. As this is my first column, I m going to set a precedent by taking a stand, though I realize that this is hazardous to a pundit s career. Advertising business models, along with many retail models, on the Internet are DEAD, and the market will inevitably acknowledge that fact.
Some cheerful types are certain to disagree.
They will point to advertising industry spawned surveys suggesting that Net ad spending will quadruple over the next few years. Furthermore, international ad spending should grow at an even faster clip, though from a lower base. Let s do some quick math. I thought so. Of these, the conversion rate to actual sales is equally small.