> I definitely think there's an advertising bubble and it's popping.
This is something I’ve been thinking about a decent amount over the past few years. Advertising is the cash cow that underpins a good chunk of tech firms’ value. But the purpose of advertising, ultimately, is to drive sales of real goods and services.
Are those tech firms really driving actual consumption to a degree that justifies their value? I suppose it’s possible, but the massive growth in tech firm valuation doesn’t seem to be paralleled by massive growth in the “real” economy.
This is something I’ve been thinking about a decent amount over the past few years. Advertising is the cash cow that underpins a good chunk of tech firms’ value. But the purpose of advertising, ultimately, is to drive sales of real goods and services.
Are those tech firms really driving actual consumption to a degree that justifies their value? I suppose it’s possible, but the massive growth in tech firm valuation doesn’t seem to be paralleled by massive growth in the “real” economy.