7 Keys to Marketing Genius: Internet Bubble
The following is an excerpt from The 7 Keys to Marketing Genius by Michael Daehn
In the late 90s the Internet was riding high as the vital component of the information revolution. Internet company founders were getting rich overnight. Investors were pouring billions into what appeared to be the next big thing. By 2000 there seemed to be trouble, and many Internet companies started to go out of business.
A major reason why the Internet bubble burst is that people were basing their business model on the selling of advertising on their sites. The remarkable advantage of the Internet as we will discuss further below, is that it is measurable. The Internet does not try to guess how many people look at a site, or click on a banner ad, or purchase a product from a banner ad for that matter, it can actually measure all of those things in real time and real numbers instantaneously. This is a Copernican revolution in terms of advertising. It was also the death of many of the businesses based on selling Internet advertising because they were still trying to sell based on impressions, but such fantasies are not needed nor tolerated in the Internet world.