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Monday, February 04, 2008

Internet advertising

I've noticed what seems like a trend over the last few years regarding Internet advertising. I'm seeing more and more major advertisers on banner ads. It's been a long, slow trend, but it seems significant. I don't know what the numbers are for the industry, but I tend to trust trends that I can see, especially when they change over a long time period.

Here's an article that seems to capture the investment mood lately.
Investors were offered a glimpse at Google's durability in tough economic times when the company announced lower-than-expected quarterly results that failed to meet Wall Street forecasts. Even though revenue rose more than 50 per cent and profit grew 17 per cent to $3.79 a share, results fell short of market expectations of $3.91 a share, sending the stock spiralling by as much as 9 per cent in after hours trading.

Consumer clicks on advertisements grew only 30 per cent in the quarter, down from about 50 per cent growth in the previous four quarters.
Seems like someone's not seeing the forest for the trees.
The last significant slowdown in ad spending hit in 2001-02 after the tech bubble collapsed. But while ad spending slowed that year, it still grew by a rate of 1.4 per cent.
I think the whole Microsoft/Yahoo thing is just a highly visible part of something very big.

I don't have any investments in the Internet industry right now, but I do have investments in things I believe are long term trends.

I know you specialize in Pink Sheet stocks, and there is one that just attracted an activist investor. It is KEWL. I wrote on it here:

Aside from the complex physical connections that make up its infrastructure, the Internet is facilitated by bi- or multi-lateral commercial contracts (e.g., peering agreements), and by technical specifications or protocols that describe how to exchange data over the network. Indeed, the Internet is essentially defined by its interconnections and routing policies.

As of December 30, 2007, 1.319 billion people use the Internet according to Internet World Stats. Writing in the Harvard International Review, philosopher N.J. Slabbert, a writer on policy issues for the Washington, D.C.–based Urban Land Institute, has asserted that the Internet is fast becoming a basic feature of global civilization, so that what has traditionally been called "civil society" is now becoming identical with information technology society as defined by Internet use. - web design company, web designer, web design india
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