Speculation On a Second Internet Economy Collapse

David Barrett writes "If you sell three billion ads a month and can't break even, what do you do? Drop prices by 40% and switch business models, apparently. Is this an isolated incident, or does it contribute to the growing pile of evidence that ad inventory is overpriced industry-wide, with Google being the worst offender due to its policy of requiring minimum bids on keywords that would otherwise go for cheap? Check out this analysis on my blog and make up your own mind."

All that SOAP

[hostyle]

Bubble 2.0. The burst is coming. See it live on slashdot.tv.

Re:All that SOAP

[Yvanhoe]

Surely the best place to witness it would be on Google Video

Re:Wish there was a "Free market" advertising syst

[draxredd]

free market means one can establish a new business in said market. NOT that established business shouldn't set their own price for the service they are selling.
Go ahead and establish a more efficient service than google's... but wait, what would be your interest in driving prices down, once you'll be the dominant player ?

Re:All that SOAP

[__aarcfd8085]

*picks up sandwich board and placard*

"the version release is nigh! repent, ye users of keyword searchs for the saviour: syntactic web 3.0 will cleanse you of spam"

Its all CLEAR...

[PC and Sony Fanboy]

So, does this prove that step 3 is actually 'receive advertising funding'? It must be something important if it might precipitate the fall of web 2.0.

For example:
1. Make Website
2. Host Material (User Created or otherwise)
3. ??????? - (ADS? Really? WHO KNEW?! *sarcasm*)
4. Profit!!

Other Industries Prosper on the Internet

[ehaggis]

"The first internet bubble popped largely because all business models failed except for ad selling." (from the article).

I disagree. Pornography and Gambling as well as on-line RX have proven to be profitable over time. Perhaps the monetary profit margin is inversely related to the moral and cultural benefit to society.

Re:Naive Question

[Anonymous Coward]

How many of you have ever actually made a purchase based on seeing a web ad?

I'm pretty sure that I've never done that.

Well, that's why you don't have a 14" penis like I do.

;-)

Dot.Com 2.0

[TwoTailedFox]

Dot.Com 2.0: Die Harder?

It's the speculators!

[WPIDalamar]

Clearly this is the fault of the speculators and not the underlying business models!

We should boycott this speculating blogger and refuse to visit his site!

Re:Naive Question

[GNU(slash)Nickname]

How many of you have ever actually made a purchase based on seeing a web ad?

Well, I always make it a point to click on the ads for those sites that try to sucker people into paying to download free software. Does that count?

Re:All that SOAP

[rvw]

*picks up sandwich board and placard*

"the version release is nigh! repent, ye users of keyword searchs for the saviour: syntactic web 3.0 will cleanse you of spam"

Tonight at 11: sandwich with spam!

Well I guess Ty Coughlin was right!

[Illbay]

You know, the "beach-bum from Hawaii that made a pile of cash on the Internet [ezinearticles.com]?"

He tells us in his latest radio ad that we have "only two years before they change the Internet, and you won't be able to make money like I did any more."

We'd probably better get to his website and sign up, before it's too late!

I mean, would a beach-bum from Hawaii steer you wrong [stevegigl.com]?

Re:Psychology catches up everything

[i_liek_turtles]

Does it mean I visit slashdot too often when I read that as "Amateur Pornographer", and then wonder how you subscribe?

Re:All that SOAP

[elrous0]

Not for much longer.