Online Sector Partially Responsible for Possible Recession
Is online advertising reaching too deep for dollars, while there really isn’t any more to go around?
Is the over-valuation of online companies a detriment to the country?
If I had to venture a guess, I would say there is a good chance we are headed towards a recession. A lot of people blame the Internet and the way business is run via the Internet on many of the country’s financial problems.
I do agree that many online companies are significantly overvalued, but if the market is ripe, and it is, then these companies will continue to command high sticker prices.
The online advertising situation is one that is completely blown out of proportion in my opinion. People expect the swing upwards of advertising dollars spent on the Internet will have to slow down. I disagree. With less than 10% of all advertising dollars being spent on the Internet, all I see is the upward momentum continuing.
So what will cause the recession. A mix of a lot of things; raised oil prices, fallen home market, big banks, dependence on China. The list goes on and on, but it certainly isn’t the Internet’s fault.
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