Re:Alphabet's earnings miss profit estimates as spending grows
by Spooky23 on Thursday February 01, 2018 @10:11PM
(#16288105)
Ad spending tends to revert to the mean. I recall a professor talking about how it’s a leading indicator for economic problems. Spending increases have diminishing returns, and and tend to pop with the rest of the economy.
Then ad spending has increased by a little over 6%/yr.. In comparison, the worldbank says world gdp rose 2.5% + 2% inflation = 4.5%... so 1.5% higher than the average industry. That doesn't sound like a bubble to me.
If google is growing faster than 6%... then that would mean its just taking market share from traditional advertising. I would expect that, since TV and radio are losing their share of time to online sources.
0. This is a worldwide number.. since google is a multinational, so this is probably the most appropriate number IMO