Advertising-based models in a downturn

It occurs to me that advertising has a high beta - it does really well when the economy is up, and totally craps out when the economy dips. Brad Feld’s musings on What Happens To CPM’s When The Economy Turns Down? made me think about my friends running businesses predicated on the idea of selling ads on their platform, and what would happen if the market for that inventory declined. A secondary revenue stream to monetize the userbase that either counters the market (as a hedge) or has a positive alpha (evergreen) is called for.

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