FreshBooks cloud accounting app

Recession in Online Businesses and Marketplaces – Are We There Yet?

AdBriteI’ve written about the recession that is (finally) gotten into the online marketplaces before – Online Marketplaces Hit by Recession? – the recent development on AdBrite confirmed that recession is on online marketplace right here, right now.

The breaking news on the lay off on 40 per cent of AdBrite’s employees, including two executives two days ago by TechCrunch has really awaked us, finally.

AdBrite, one of the top five advertising networks according to Comscore, was said to underwent a major cut mainly to keep it afloat and profitable.

Why such top advertising network underwent a major cut?

Reading the colourful comments written on the TechCrunch blog post is mind boggling, as well as eye opening – while some blame the economy, others blame the questionable business model of Adbrite and today’s online advertising network as a whole.

I think that the economy plays a somewhat major role in AdBrite’s recent development. The recession affects AdBrite’s advertisers and publishers, and this eventually and logically affects AdBrite’s revenue count.

However, the economy is not the main culprit of the massive employee lay off, in my opinion.

I am no expert in online advertising, but I agree to some of the TechCrunch blog post commenters that think the AdBrite situation as a result of poor adversiting system quality, especially compared to Google AdSense.

While AdBrite business model worked well before, the pressure of recession push it to the situation where no mistake is tolerated – at least not in the way it was tolerated before.

The end result – lay off and the departure of whom some considered as AdBrite’s best team members.

The economy is sustaining and balancing itself

I view the AdBrite situation not as a negative outlook of online business as a whole.

Instead, I consider AdBrite case as a proof that the economy is sustaining and balancing itself – to offer everyone a fair(er) chance to offer better services and products.

The shake off also indicates that smaller advertising networks can perform better and more stable, as they are more nimble than AdBrite and the likes in responding the economy changes.

The AdBrite case is a very interesting case study to learn and follow, indeed.

And yes, the recession is pretty much in every facet of our live, including online business and marketplace. And, oh, the recession is here to stay.

What would you do about it? Drown in a negative outlook of your life or creatively take advantage of the situation?

I suggest you do pursue the latter.

Ivan Widjaya
Recession – enjoy the ride!
Image by whiteafrican.

About author

Ivan Widjaya
Ivan Widjaya 1613 posts

Ivan Widjaya is the Owner/Editor of Noobpreneur.com. He is a web property investor, blogger and web property builder.

featured video

You might also like

Blogging

Top 10 Mistakes Business Bloggers do in Growing their Blogs

Building a blog as a business is certainly not easy. If you have heard from the so-called experts that blogging for business is easy, you have heard it wrong. Establishing

Investing

New Year, New Hope: Plan to Get Ready to Surf the Big Wave

First of all, I would like to apologise for not posting in this past few days. I’m not being lazy, but actually I spend more time with my family and

Blogging

Monetization Mistakes That Many Bloggers Make

The truth is that most bloggers out there want to make money through blogging and monetization is a huge priority. The problem is that it is quite difficult to properly