Noam’s Flaw?


Niki Scevak, analyst with Jupiter Media makes light of Eli Noam’s argument that IT and media are going to hell.

bq. The reason why his premise is flawed is that advertising pricing on the Internet is rebounding strongly (paid search is the best example of this). Noam misses the bigger picture. Advertising markets shadow consumer behavior. They do so slowly. Search is another example. Ten years ago it was the most popular activity on the web. Today it is too. In the beginning, consumers paid nothing and advertisers paid nothing. Now advertisers, acknowledging the value of the activity are spending money on paid listings. Distribution costs are falling dramatically and with that consumer pricing, but don’t be fooled because pricing of advertising inventory is rebounding

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