What Web 2.0 startups do during a recession

    The last few years have become the time of the heyday of a new generation of Internet startups, the so-called Web 2.0 projects. For five years, their advertising revenue jumped from $ 6 billion to $ 21 billion. But the recession that has come could make this bubble burst, as happened in 2001. Which companies are better than others through difficult times, writes the Wall Street Journal .

    According to venture capital investors, the easiest way will be three types of startups. Those who have:

    1) a large audience;
    2) direct response advertising sales model: CPC and CPA instead of CPM;
    3) niche content.

    In a period of uncertainty, advertisers will cut advertising costs and concentrate on the most effective advertising platforms. Marketers will choose well-known and proven ways of placing advertising budgets. They will be more likely to use behavioral targeting and other forms of targeting.

    Experts advise startups with an actively growing audience to increase the staff of advertising agents in order to continue to increase the volume of advertisements placed.

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