With the speed at which our digital world moves, things happened five minutes ago tend to be forgotten. Thanks to this, younger readers especially might be forgiven for not knowing some of the older events that shaped the internet and our communications culture into what we know today. Luckily, JumpSIX Marketing has a real appreciation for digital history, and we often use our blog as a way to look back on what brought us to where we are now. In this entry, JumpSIX Marketing looks at one of the biggest economic stories of the early 21st century – the bursting of the “Dot-Com Bubble”.
The Initial Enthusiasm
By the mid-90s, the internet was officially “the next big thing”, and investors started to take notice. Anything with a “.com” at the end of it was likely to have someone waiting to heavily invest, looking to profit from the rapidly rising popularity of all things connected.
This led to a huge spike in the number of people starting web-based businesses, with dollar signs in their eyes and an eagerness to get their foot in the door of the digital revolution. Unfortunately, for many of those business and investors, that’s not how it worked out.
By the end of the late 90s, the “Dot-Com Bubble” – a rapidly inflating enthusiasm for investing in new dot-com business ventures – was reaching its breaking point. In 2000, it finally burst.
Many of the investments in the upstart companies emerging as the bubble expanded were speculative. In economic terms, “speculation” means investing in something that is unlikely to be a sure thing – but that will have an immense payoff if it is. Of course, the keyword here is “if”, and most of them didn’t. When some of the major, leading tech companies of the time sold their stock at the beginning of March 2000, investors panicked and began to sell.
In just a few short works, the stock market lost 10% in value, and investors stopped investing. The funds for many of those upstarts suddenly vanished, and even companies that had rapidly been amassing a fortune suddenly found themselves bankrupt.
The dot-com bubble bursting was one of the first major economic stories of the 21st century and saw millions of dollars in speculative profit evaporate in a nightmarishly short time. Investors and internet entrepreneurs alike learned a harsh lesson in hasty investment and buying into the hype, but the fallout wouldn’t be permanent.
While the dot-com crash is too much to cover here, it’s an important part of the history of the internet as we know it now, and had a big influence on the current digital economy. Despite the impact that the burst had, digital marketing reemerged and continues to drive revenue.
Some of the biggest names online today, Google among them, weathered the storm that came with the bursting of the Dot-Com Bubble. Over time, marketing agencies like JumpSIX Marketing emerged with a better understanding of the financial benefits of the internet.
Obviously, the internet itself survived. Despite the doom and gloom that came with much of the reporting of the collapse in the early 2000s, we all use the internet for practically everything. The difference that the burst made is increasing caution in both investors and consumers when it comes to putting their faith behind every new digital startup.
Contact JumpSIX Marketing
At JumpSIX Marketing, we understand how important it is to have an appreciation for what’s gone before, in order to properly plan for what’s to come. When it comes it to digital marketing, digital advertising, SEO, web design or search engine marketing, you can be sure that we pull from a deep well of knowledge to help you. Contact JumpSIX Marketing’s digital marketing team today.