Summary: The internet is a mirror in which we can see important aspects of America. Businesses funded by speculation (greed) struggle to survive in an era of few opportunities and falling investment, while high technology and rising inequality reshape America. The social media stocks are in this maelstrom, as virtual advertising space grows faster than their audience and advertisers dollars. Publishers grow desperate, try ever more intrusive ads. Few will survive.
- The race for internet revenue.
- Analysis of the ad-supported internet.
- For More Information.
- Great books about bubbles.
(1) The race for revenue on the internet
The evolution of the internet is best seen in terms of what pays for it: banner ads, then pop-up ads, then auto-run video ads, and now “integrating” the content with the advertisements (these tends often end by debasing the product). It is an evolution to increasingly intrusive ads, forcing people to either spend more of their time killing the ads — or installing ad blockers (which are in a Red Queen race with the developers of ad technology).
Don’t blame the managers of these companies. That’s as foolish as blaming airlines for the poor service that accompanies the cheap fares we demand. We don’t pay for most of the information and many of the services we get on the internet. As Andrew Lewis said: “If you’re not paying for something, you’re not the customer; you’re the product being sold.” So we have no grounds to complain.
The managers know the futility of this race they’re locked into, but they’re desperate.