Publicis CEO Predicts End Of Advertising Bubble
Our economy isn’t in such rough shape that food has become unobtainable. Internet ad revenues may be in short supply, however, and a lot of people and companies could encounter problems as a result.
Publicis, an advertising corporation with 251 offices in 81 countries, is well-connected in this arena; its chairman and CEO, Maurice Lévy, is presumably well-informed. So when he said, “Far too many people are building plans based on advertising, and they may well be disappointed because there is not enough money for everyone,” there’s reason to listen up.
According to Andrew Edgecliffe-Johnson, Lévy continued, “It’s exactly the same situation as we saw at the end of the 1990s, when everyone thought that because he had a website he’d get the valuation. Now everyone building a Web 2.0 operation believes he will receive the advertising.”
All of this isn’t to say that people who depend on Internet advertising is doomed – a number of companies did survive the bursting of the first bubble. Still, from Lévy’s perspective, things don’t look very positive.
Meanwhile, Google’s stock is down about $80 from its opening price on Thursday.