News

Wake up!

by Anil Gupte
Monday, May 28, 2007. 02:22AM
440 Views 1 Comment

Wake up and start talking - I'll make the coffee!

There is obviously no question that the growth of online advertising is accelerating, to the point where it may be funding the next big bubble or the “next big thing”. In the past two months the four giants of the Web have plunked down more than $10 billion in to buy businesses that control how ads are bought, sold and displayed across the Internet.

Microsoft acquired Seattle online advertising and marketing firm aQuantive for about $6 billion in cash. A day earlier, WPP Group, said it would buy online advertising company 24/7 Real Media for $649 million. And last month, Google agreed to buy online advertising provider DoubleClick for $3.1 billion, while Sunnyvale-based Internet company Yahoo struck a deal to buy the privately held online ad exchange Right Media for $680 million.

But on Adholes, all this might never have happened. Come on folks! What is going on? We want you industry heavy-weights to weigh in on this. What does it mean? Where is the industry going? And my favorite topic – what about ads for Internet TV? Enquiring minds want to know.

Oh, and all you industry insiders, please lets hear from you soon - before amateurs like me start telling you what it means.

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Monday, May 28, 2007. 03:13PM by arthur barbato
Since 1960 the trend for Mergers and Acquisition frenzy to be followed by more companies going public is almost always something we see after periods of uptrending DOW* and Nasdaq stocks. *(a dozen + new highs this yr. in DOW) A new wave IPO may be triggered by declines in expected returns, or increases in uncertainty about web centric company profitability. With our current war economy and disrurption of oil flow a constat concern, all comapnies that have a mission that moves them away from energy will likey see continued profit growth and therefore a NASDAQ bubble is several years away. This model predicts IPO waves on a predication of preceding high market returns, followed by low market returns, and accompanied by high stock prices. These, as well as other predictions are supported by WallStreet's natural lust for profit. Stock prices, at the peak of the recent ‘bubble’, which was associated with an IPO wave in the digital sphere, are consistent with our model. All the recent activity involving aQuantive, DoubleClick, 24/7 Real Media, Right Media, Microsoft, Yahoo, Google, WPP, et al, is a good thing, Anil. Rently ( March) we had the 8th largest single day percentage drop in the DOW following a panic in China's stock market, that unexpected event may well fit into history along side other 'unexpected disruptive events' as a 'buy' opportunity with real legs.