Great (Media) Depression Looms

[Commentary] That digital has become pervasive enough to be mainstream, but not advanced enough to be robustly profitable, is especially problematic. Morgan Stanley Internet analyst Mary Meeker sifted through the current mess in a recent Web 2.0 Summit presentation-conceding that online advertising trends are not the runaway train forecast only a year ago, when there were an estimated 1.35 billion Internet users, $41 billion in online advertising revenues, and about $30 in ad revenues generated per user. In the midst of a recession, online ad prices will likely decline as supply far outstrips demand. The good news: "History proves that ads follow eyeballs; it just takes time," she said. The bad news: eyeballs are fixed to every kind of screen imaginable in the world, making measurement and ROI challenging. The best way to counter the unknown depth and breadth of the recession is to persevere, Meeker added. Master the mobile Internet, learn how to monetize social networks, create a cogent business model, get a foothold in emerging markets and provide digital consumers with value.