[moldbug]

Here's a catchy name for the ad bubble - we could call it "advertising-supported software." Or, for short, ASS.

Google isn't ASS, because Google ads aren't really ads. They're more like the shelf slots that Safeway sells to food vendors. Google is a store - the world's biggest store, browsed by full-text search.

(In fact, if I was Goog, I'd separate the UI into two intents, with a radiobutton or something: either you're shopping, or you're searching for information. The latter is a free, spamless service that supports the former.)

I think FB will have to learn to make its money the old-fashioned way - by providing valuable services. FB is a valuable service - it makes $5 per user a year, from ads. How many FB users would drop the service if they had to pay $5 a year? And how many other services can FB add? Dropbox anyone? Dropbox isn't ASS...

Advertising is a crappy way of funding services. It chiefly exists because of payment friction. Startups are supposed to be the future. Is crap the future? Is your project ASS? Great, but have a plan to exit before the ASS bubble pops. Some of us remember the first era of "eyeball valuation"...