Web 2.0, Advertising 2.0 and “The Bubble”

So what is the deal with the current state of the web? I keep reading articles about how things are looking like they did during the ’99 “Dot Bomb.” Are we heading towards a massive burst in the bubble that is building up or will it continue to grow strong this time? There are many factors that come into play that I believe is causing all of this speculation about the web industry.

First, social networking and user-generated content sites (e.g. Myspace, FaceBook, YouTube, etc.) are getting evaluated in the billions when they have no succesful revenue generating models. Even a site like YouTube is being evaluated above $1 billion when it brings in absolutely no-money and is a consistent loss.

Second, salaries going up, companies spending boat loads, and the industry is boming like it was back in ’99.

Third, advertising money is going up and the industry is screaming along with a massive amount of growth.

So, what does all of this evaluate too. In my eyes a lot of people are saying the Web 2.0 and Advertising 2.0 industries are both going to see another huge “bubble burst” like we did back in ’99. But, truthfully, I highly doubt that we will see a huge shift like this for sometime, if ever at all. People have learned from mistakes and the cases are not the same. The industry still has much more growth within it, especially with the new broadband and digital mediums being provided. There might be a slow down pattern, but I can bet you that there will be no “Dot Bomb 2.0″ anytime soon.

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