Second Collapse of the Internet Economy Underway?
The original post by Quinthar
The first internet bubble popped largely because all business models failed except for ad selling. Is it possible that the last stalwart hope is itself doomed?
TechCrunch reports that Lookery, a company specializing in selling ad inventory on social networks, is barely breaking even despite selling 3 *billion* ads per month. And rather than raising prices to become profitable, they’re actually in the uncomfortable position of lowering prices 40% — from 12.5 cents to 7.5 CPM. It reminds me of the (often unintentional) joke “We lose money on every transaction, but we make it up in volume!”
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