No Bubble – At Least for Now

Frederic    Uncategorized    

himmojo.com has some good reasons why there is no Web 2.0 bubble:

After the burst, CPC ads took off and advertising began to offer some kind of ROI. Today, we might see a slowdown in CPC rates but demand is strong enough that if one advertiser stops to bid on a keyword, there are more than enough willing to step in and replace said advertiser.

Why? Because there are far more people online today than back then, broadband reaches over 50% of homes, and online ads are a $15B ad industry…

One thing is for sure, though, Google’s Adsense is what is driving business on the Web 2.0 front, and in the long run, that kind of monoculture can’t be a good thing. Something happens with Adsense (some bad press might be enough these days), and a lot of companies are going to go bust. Of course the Adsense money is going to go somewhere, but who knows where? Maybe it isn’t going to go into advertising budgets…

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