Venkatesh Rao@vgr@timhwang how does this fit with your theory of peak ads...?Quote TweetGreg Borenstein@atduskgreg·Feb 15, 2016Replying to @vgr@vgr Advertising has been fixed near 1.2% of GDP for 90 years. Goes up and down a bit with the economy, but very much zero sum game.3:03 AM · Feb 15, 20161 Like
Tim Hwang@timhwang·Feb 15, 2016Replying to @vgr@vgr It fits, IMO. My read: online ads haven’t grown the pie, but merely represented redistribution of revenue from one channel to another.1
Tim Hwang@timhwang·Feb 15, 2016Replying to @vgr@vgr If online ads had been markedly more effective to what came before, we should observe reallocation in ways that grow the GDP slice.1
Tim Hwang@timhwang·Feb 15, 2016Replying to @vgr@vgr Now, what is different: the industrial organization produced by online ads vs. what came before.1
Tim Hwang@timhwang·Feb 15, 2016Replying to @vgr@vgr That’s where “peak ads” is: not that ads might disappear, but that assumptions of the current economy might not be as firm as we think2