My take on what is happening is that the so-called new economy will in fact benefit massively from an oil shortage.

Recently, there were some numbers released that I blogged about, that appear to show that in the US as a result of the increased price in oil, more people shifted their retail spending on line. Om Malik blogs about Doppelganger, that presents a new business model that is part virtual world and part billboard.

As broadband take up rapidly increases in the US – partly as a result of ADSL2 – the US market is going to become more like Korea, which has over 30% of all retail expenditure taking place on line. This makes search one of the critical economic drivers.

So oil shock = people stay at home more with continuing needs = greater reliance on search and better prices = more investment in companies that can provide a better search experience for the consumer.

Looks to me like Web 2.0 has got a ways to go before you can call this more than rational exuberance…..

This entry was posted on May 15, 2006 at 9:18 pm. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Posted in Main Page by Chris Gilbey No Comments Yet