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Head on the blog (sic): there won’t be another internet crash. Ever. Sure some of the web 2.0 bandwagon jumpers will crash and burn taking VC dollar into the fire, but that’s no different to any other sector. And besides, internet isn’t a sector anymore, it’s just business.
If you need proof, take a look at the study released today by PricewaterhouseCoopers (PwC) that revealed internet advertising is poised to leapfrog TV as the UK’s dominant format.
Currently accounting for 15% compared to TV at 19%, online spend will more than double over the next five years to represent 35% of all advertising in the UK.
Internet consumption, spend and enterprise is being driven by the ‘net generation’ of those born between 1977 and 1997, claims the study, whose preferred media is the internet. Oblivious to technology they’re driving the digital sectors, absorbing over 20 hours of media a day, compared to their elders who watch just 20 hours of TV a week.
With 30% of the UK population under 25 it all adds up to a business boon for advertisers, according to PwC's head of entertainment and media Phil Stokes:
“So long as companies are clear and upfront about specific policies and practices, net gen’ers are comfortable sharing private information in exchange for a more relevant and customised entertainment and media experience.
“Responding to the net generation is a global phenomenon. In countries such as Brazil, people under the age of 25 comprise 43% of the country’s total population. This figure is as high as 50% in India. Engagement with this digitally minded generation will guarantee growth in the digital market as they enter the workforce, and as income per person increases.”
Consequently, the study also predicted greater convergence between entertainment and media companies.
The economy might be stagflating but internet spend isn’t. Web 2.0 crash? No chance. Any companies that slip away just won’t be good enough companies and surely that’s perfectly natural?
Image: Flickr
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