I heard a story saying that the advertising market shrink down after Google entered. I doubt this strongly because Google is doing so well with its ads, though I never know what's the older days like. I'd still like to know whether there's any example in real life that after a serious competition the market cake went smaller rather than bigger.

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    This question is more related to economics than personal finance. I'm pleased to tell you that economics.stackexchange.com is now in beta. I'd suggest posting there, as I'm expecting this question to be voted closed as OT here. Dec 6, 2014 at 13:49
  • Regardless of Google profitability, I doubt the ads market shrank since 1998. Can you provide references for such a claim?
    – littleadv
    Dec 6, 2014 at 22:59
  • Sorry and I've repost to the other site. Thanks very much for pointing out! Dec 8, 2014 at 3:14
  • You are most welcome! Dec 8, 2014 at 3:34

1 Answer 1


I'm not sure I understand, but I do know that the print classified advertising market shrank substantially after the growth of the internet - print advertising was replaced by competition from online advertising. Google's Adwords product took a big chunk of the market, as did many other websites, eg, Monster.com, Realtor.com, LandandFarm.com, etc.

  • But that doesn't mean that advertising market as a whole shrunk, it just means that the advertising medium has changed. If I read the OP correctly, he claims the whole market shrank...
    – littleadv
    Dec 7, 2014 at 5:09

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