I was about to start a diatribe on why this post is so wrong and call this guy all sorts of names but I just had a really good cup of coffee so I’ll be more fair about it.
The biggest disservice that Google did is to make a generation on entrepreneurs get stuck on thinking only about advertising.
I guess Manu is writing about all those green, bright eyed, bushy tailed entrepreneurs who’ve read about how to monetize their websites using Google Adsense.
I, on the other hand, blame any sort of bias towards advertising on uninformed entrepreneurs. There is a huge entrepreneurial learning curve when it comes to testing traffic and there is a big divide between someone who is motivated enough spend the time and resources to gain that knowledge and someone who is not.
The other day, someone who works in online marketing but is relatively new to it asked me to give them a Cliff Notes summary of paid search. I described it for them but do you think that’s even as close to being valuable as starting an Adwords account and running some test traffic?
How informed an entrepreneur is about online advertising may be an indicator that an investor might want to use to separate the entrepreneurial men from the boys. Also, you can talk about how everyone entrepreneur is so focused on building ad-supported businesses, but that’s not going to make the penny gap disappear. Ultimately,pricing and demand are consumer driven. The economics of online media are based on the foundation of the market and individual firms only have a few levers.