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Question posted: 1 year ago,
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What will be the impact of global recession on web, are there any particular web business or services that will actually be more successful or there will be an impact across all the online businesses or services. Do you have any insights or some predictions for business such as - online recruitment, online videos/entertainment, online news, shopping, social networking, etc...
Deepali, according to me the effect of the recession on web services would be on this lines:
- Venture capital would be harder to raise,
- Financing and exit valuations would be lower,
- investors would emphasize on revenues than building of communities and services,
- & the growth of online advertising would be slower.
one of the inherent problem of web services is that most of them are not making money and do not have a sound revenue model. Monetization was the question to which most of the entrepreneurs are not able to answer with full confidence. Experts have been warning the free service providers of creating a revenue model for their services otherwise survival in the long run was impossible. The free services are the ones that would be hit the most in this financial crunch....
Good insight Sameer!! the only point where I have a li'l doubt is the growth of online advertising...What I think is online advertising will see better gowth than any other media in this global meltdown. more marketing budget will shift to online. Better monetization is a concern but solution is around the corner for the same. I don't think that there is any serious issue regarding the revenue models when it comes to online advertising. Many publishers are very clear about it.
It's been mere 5 odd years that online advertising has spread its wings in India, hence it will take another couple of years to pick all the loopholes but the way people are shifting to online for all their requirements, it is very unlikely that online advertising will see downturn in near future. in fact when it comes to advertising, online is the future. Receission has left companies with smaller budget to create big values, hence companies have to resort to cost effective means to make brands and online can do this in a better way.
Tendulkar has scored a Boundary! All four points are right. What he is saying is due to the above, most of online businesses will have difficulty to operate. This is more so for free service providers.
I may have a point or two oppose his view on reduction in lack of growth of online advertiing.
A lot of new activities will go online. Many businesses will find it useful. Niche networking sites will develop and some time or the other, they receive favourable valuation. E-commerce will increase. Online banking will imoprove. All these will actually increase online advertising. Costs of online advertising will come down due to increased volumes and this will also make online advertising attractive.
If Deepali is looking to develop new products - we call in entrepreneurship that a problem is an opportunity - my suggestion is for her to think of innovative products and services which will encourage small and medium businesses/services to make maximum use of online models. I have an idea but then should Deepali know this?!!
There will not be much impact of recession on online business,social networking and online recrutment.
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Good one, thanks for sharing |
good one :) |
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