Is the Global Financial Crisis coming to news?
Gautam Mishra
Experienced senior executive. Proven success in both growing and restructuring businesses. Passionate about creating an impact. Wharton MBA.
Most people would know that the sub-prime lending crisis started in the US real estate industry. As lenders saw rising demand for repackaged loan portfolios that they could on-sell to investors, they started to relax the constraints they would ordinarily have imposed on borrowers, because the profitability of these loans was driven more by on-selling loans rather than the quality of the loans themselves. By devising instruments such as adjustable-rate mortgages they were further able to inflate the volume of their loan portfolios and their profits. And so it went, until the day when the purchasers of these loan portfolios were forced to justify their purchases, and the true dubious quality of the loans in these portfolios was exposed. Then as we all know, both the demand for these loan portfolios, and the supply of the loans themselves came crashing down.
Most people would know that the sub-prime display advertising crisis started in the online news industry. As publishers saw rising demand for online ads that they could on-sell to marketers, they started to relax the constraints they would ordinarily have imposed on content, because the profitability of these articles was driven more by on-selling ads rather than the quality of the articles themselves. By devising instruments such as click-bait they were further able to inflate the volume of their ad portfolios and their profits. And so it went, until the day when the purchasers of these ad portfolios were forced to justify their purchases, and the true dubious quality of the ads in these portfolios was exposed. Then as we all know, both the demand for these ad portfolios, and the supply of the ads themselves came crashing down.
Experienced senior executive. Proven success in both growing and restructuring businesses. Passionate about creating an impact. Wharton MBA.
9 年Completely agree. And at the top end the best publishers are still investing in producing great, engaging content but it's the viralnovas of the world that seem to be chasing page views at any cost.
Trendii Founder/CEO | Contextual discovery and commerce solutions for brands, content publishers and streaming platforms.
9 年Its all about engaging the audience and monetising them through engagement, not simply serving as many ads as possible by the highest bidder