Can internet businesses survive solely on revenues from Advertising?
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Most large Internet Companies based on Social Networking or Search like Google or Facebook depend on Advertising for revenue generation. But advertising is dependent on other companies doing well. So if the economy is in recession and businesses don't advertise, won't Internet Companies suffer
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Answer:
There are thousands of online business that do more than "survive" in online advertising. It totally depends on the sector in which the business operates and how its advertising model is structured. e.g Craigslist is a great example of a highly profitable advertising business based on the classifieds model. Even everyones running joke, Yahoo made over a Billion profit last, year largely on the back of display advertising. A recession can impact advertising in much the same way as it impacts all sectors of the economy. However a recession doesnt mean the same thing as collapse. Generally a recession is a series of quarters of negative growth for the country as a whole. This contraction is measured in single digits not double. So unless your running your business on wafer thing margins, you can weather a storm as well as any other type of organisation. Ask yourself, during the past few years have you ever seen an ad free magazine, dead air on the radio or commercial free television? There are always advertisers out there no matter what the economy is doing. Smart marketeers understand that advertising when others arent, only increases your marketshare, and lowers the cost of customer acquisition (less competition)
James Ketchell at Quora Visit the source
Other answers
Yes. Google does quite nicely thankyou!, and has done so through some of the most complex and demanding global financial situations we have seen in our time. Google is the world's largest advertising company and also just happens to do search as well ;o) They (google) ONLY get revenue from their advertising system. The question i feel you are asking is "Can the every-day business survive soley on advertising revenues" and i think the answer is a clear No.
Wayne Lee-Archer
Yes. But it's getting harder every day and it will continue to get harder. Magazines, radio, newspaper, television, have done it for many many years, some with more success than the others, but they're still around.
Kriz Galicia
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