Like it or not, the Internet economy is fueled by advertising, which has gone from $0 to $60 billion in just 20 years, reports The Washington Post in a story on Internet trends. That uptake dwarfs the development of advertising in earlier media including radio and television, whose rapid expansion seemed equally shocking in their day.
The Post piece, in part, added:
“Still, the full potential for online advertising is far from realized. Advertisers and ad agencies are sticking with traditional media even as consumers have shifted their attention to the Internet and mobile devices in particular. (Mary) Meeker estimates that advertiser inertia translates to under-spending on mobile to the tune of $22 billion. That’s a profound opportunity for players in the mobile ecosystem. It’s also a profound risk for traditional media. Not to mention newspapers, which, in fact, Meeker doesn’t mention.
“So far, Internet advertising revenue is profoundly dominated by Google and, to a lesser extent, Facebook. Google alone controls nearly half of the market, which it and others guard jealously from potential new entrants, including ISPs, who are now being threatened with new FCC rules that will make it impossible for them to compete.”
The story also stated that “Every year, Meeker, a leading venture capital analyst, comes up with an extraordinary collection of data on a wide range of topics in the innovation economy, revealing in broad and specific terms where the Internet and related technologies are and where they are going.”