Yeah, I know, it’s a duh moment, but since Google’s chief economist says so, then it must be true and news! Then again, what would they say, Google, since they’re pimping search based advertising as the driving force in the trend that defies the sluggish economy. And yes, we’re talking the USA here, with a currency valuation that make my bank account cry.
Anyway, it’s not only Google that figurates in the Mercury News story about the internet money train. There’s actually a lot of predictions from various parties, which makes it interesting I guess.
This isn’t surprising facts. Actually, I find the story to be a bit of a pseudo-piece, built solely around quotes from analysts, which means that it’s all about predictions.
One thing, however, is a bit scary. The article quotes Robert Atkinson, president of the Information Technology and Innovation Foundation, in several places, and this is what wraps it up:
He called personalized online ads “economic rocket fuel” that makes much of that growth possible. Atkinson warned that worthy efforts to protect consumer privacy online – now under discussion in the Federal Trade Commission and Congress – could have the unintended consequence of threatening that growth.
Consumer privacy is important, it needs to be protected. However, if regulations to consumer privacy is a danger to the growth of online commerce, then I’d say something is wrong with the marketing methods. Or completely right, depending on your stance on this. Personally, I don’t mind targeted ads, but I want to be sure that the garnered information about my habits stay in the right hands. It sure beats getting marketing for silly ringtones at least.
The solution to a possible “stop collecting so much personal information” regulation would be niche advertising. That brings niche sites, which in a lot of cases means blogs. Something that isn’t mentioned once in the article.
The online growth and the money that flows affects us all, question is how big the piece of the pie is. Probably small, unless you’re a big player. Still, if there’s a consensus that online advertising is good, more companies will move their marketing money online, especially smaller niche ones. Again, here’s blogs.
Finally, back to ringtones:
Michael Avon, a venture capitalist with Columbia Capital, said investments in Internet companies and start-ups have dropped off a little from last year. But he said the coming development of open platforms on mobile devices and the increasing use of social networks to sell more services and products – even $3 personalized ring tones – will create new business opportunities.