This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The Digital Skeptic: Get Ready for a Google Glass Crash

Stocks in this article: GOOG

"We simply don't have a Web marketing vehicle everyone values," he said. "There is no 30-second spot of Internet."

Investors need only take a gander at the otherwise marvelous online feature, Snowfall: The Avalanche at Tunnel Creek at NYTimes.com to see how deeply undeveloped Web marketing is. The piece was labeled The Future of Online Journalism and bagged both a Webby and a Pulitzer Prize, but Edwards forwarded me a screenshot of the almost nonsensical banner ad that plays inside in the feature for most consumers.

"You would think with all that effort, the Times could have come up with a better way to integrate the ad that pays for the feature," he said. "But they didn't, and it makes this otherwise marvelous story look stupid."

The 10-cent CPM
If investors look through Glass with Edwards' eyes, they'll see right away what he's looking at: a cottage industry racing to create apps and tie-ins for the technology, but with major problems that are being kicked own the road. Yet CNN, Twitter, Facebook (FB) and numerous start-ups are betting on the technology.

"I am very interested in developing an app for Glass," confirmed Vivian Rosenthal, founder of New York-based Goldrun, developer of the Snaps! augmented reality app. "I see it as a critical new storytelling tool."

But these shops are racing against the near certainty that Google Glass will create a glut of advertising inventory that will put even deeper pressure on already falling cost-per-unit advertising rates. Ashkan Karbasfrooshan wrote over at MediaPost.com that, by some measures, cost-per-thousand click metrics could actually fall to zero.

"Today, we realize that mobile advertising is filled with so many riddles that no way on earth is the amount of time spent on the medium going to match the time we spend connected to advertisers," he wrote.

The fact is, for all its complexity, Google Glass will do exactly one thing: It will stream personal audio and video 24/7 to the Web with no need for special coding or data-entry skills. That will create a tsunami of personal content that will hit the Web like none before it, and, in turn a wall of ad inventory chasing after already meager ad dollars.

"If we don't start being more careful," Edwards says, "We are going to wind up with a Google Glass like the rest of the Web -- online crap that nobody watches."

"If we turn Glass into a simple supply and demand equation," he says, "nobody wins."

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs