Advertising revenue is tied to many things:
- Growing # of hours user spend online, shift to mobile from desktop.
- Traditional brand demand is moving to online and mobile (tv is still the king here, but yt and other video streaming is taking its pie).
- Growing economy - advertising is strongly tied to gdp.
1 is almost fixed now. 2 is still growing, however. The apps, sites constantly change. Instagram and FB has a huge lead here, but they are saturating, so switch from one app to another is real.
3 - brand will also eventually move to performance (how many people sign up for geico instead of how many impressions etc).
There will be a time when users will spend as much time as they can on their phones, then it’ll be about who does better ML and who has better info about google’s intentions. Hint: the answer is google and maybe amazon.