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Submitted by Scott Cleland on Fri, 2011-02-25 12:31
Expect privacy concerns to be the eventual catalyst that ultimately bursts the Internet investment Bubble 2.0. It is rare when there is a profound disconnect and suspension of reality between industry behavior/investment expectations and customer wants, needs and expectations, but that is precisely what is at work in Bubble 2.0.
- Almost by definition, investment bubbles are unsustainable; what goes up must come down, it is only a matter of how and when -- not if.
- Simply what fuels Bubble 2.0 is the patently false core assumption that the current unfettered, widespread, and largely clandestine data mining of individuals private information in order to target specific individuals with personalized online advertising:
- Is aligned with real user interests;
- Is a forthright business practice consumers are aware of and have meaningfully consented to;
- Will not be legally constrained in the future; and
- Will become the accepted norm -- meaning that the populace and governments will adapt to the wishes and desires of the online-ad- industry and not the other way around.
- In a word, is online tracking, profiling and data mining a consumer-driven model? -- or a consumer-dragged model?
This is deja vu for me. I've seen this movie before when I had a front row seat as the original dotcom Bubble 1.0 wiped away $4 trillion in market valuation in a few weeks.