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May 1
Are Video Sites and Connected Services the New Bubble?

The concerns about the next Web bubble have been circulating for a while; and especially in the online video space, concerns are escalating as things are starting to heat up.

With venture capital firms being flush with cash and looking all over for places to put it to receive great returns, it is recreating, albeit on a smaller scale, the potential for another dotcom bubble.

What's amazing about this to me is that all you have to do is perform a little due diligence and know that the video space is just starting to take up and will take a minimum of several years to start making significant inroads into the online advertising market. Now it stands at only around 5 percent of the overall online ad Video%20Bubble.jpgspend.

The reason it's so popular is because it's the fun thing that everyone likes to write about, giving the illusion that it's further along than it really is. That and the desire by media companies to offer this to advertising agencies and companies that are used to advertising on television.

Unless you're invested in online video through venture capital companies, it's not really something we need to be too concerned with.

The one thing online marketers will need to be cautious of is if you're doing some online video experimentation, make sure you've checked out the status of the company and its financial health and outlook, that you're looking at working with. It will be safer to work with those that have long-term outlooks than those that are building a business just to flip (sell fast) it.


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