Piper Jaffray: The Revolution is Upon Us

Mary Hodder reports from last month’s Future of Online Advertising conference  and a presentation by Piper Jaffray analyst Safa Rashtchy. (Here’s a pdf of Rashtchy’s paper, The User Revolution: The New Advertising Ecosystem and The Rise of the Internet as a Mass Medium.) The figure that caught my eye in Mary’s post was: “5 years ago, 3 percent of online activity was at social sites, and now 31 percent is.” Highlights in the report include these search observations:

  • Search is the new portal
  • Search is becoming a branding tool
  • Google’s dominance is increasing
  • Local search remains a looming opportunity
  • New search technologies are likely to expand the field by broadening search applications

Among the risks that Rashtchy identifies:

•Government regulation and oversight
•The continued maintenance of Internet infrastructure including backbone speed, capacity, and security

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