The document discusses how the internet is not a business itself but can be used to facilitate and accelerate business. While many digital startups expect to generate revenue from advertising, there is currently not enough advertising revenue to support all of them due to fragmentation and domination by large players. The main reason e-commerce and therefore advertising have not yet boomed in the region is the lack of online transactions and sales. As more businesses transition online and e-commerce grows due to evolving consumer behavior and payment options, thousands of new e-businesses will emerge and advertising on the internet will start to make sense as a revenue model.

1. Internet is NOT a Business
Con O’Donnell - @kanaafa
Founder: Sarmady Communications
Chairman: Books.com.eg

2. Internet is NOT a Business
Unless you are an ISP

3. Internet is NOT a Business
But you CAN do business on the
internet
Internet is a business
facilitator/accelerator

4. Why Isn’t Advertising Booming?
Every business plan I’ve seen from a
digital start-up has put advertising as
significant % of its revenues

5. RED ALERT!!!
There is not enough pie to feed the
hungry today!
But that’s okay

6. So why?
are only the SCRAPS of a multi-billion
dollar regional advertising industry
going to digital?

7. Apart from:
•Massive fragmentation of digital,
•Dominationby the big boys,
•Lack of Sexiness, &
•Suckyagencies

8. The main OVERRIDING and
UNDOUBTABLEreason is…
No commerce

9. NO E-Commerce!
No transactions
No sales
No business

10. It is NO SURPRISE
That FMCGs are the big advertisers in the
region because they are BRANDING.
Most businesses want SALES and direct ROI
on their marketing spend

11. Why no E-commerce?
Payment gateways?
Cultural resistance to buying online?
Penetration?

12. Or…
evolution

13. Look at where we are
Who are the majority of start-ups?
Where are the seasoned businessmen
& women?

14. but
We evolve
2 generations grew up with computers
1 generation with the internet & mobile
You no longer have to be a geek to get it

15. Conclusion
1000s more businesses will become e-
businesses – led by demand

16. Conclusion
1000s more businesses will become e-
businesses – led by demand
Entrepreneurs will not be exclusively techies

17. Conclusion
1000s more businesses will become e-
businesses – led by demand
Entrepreneurs will not be exclusively techies
E-commerce will boom, region-wide

18. Conclusion
1000s more businesses will become e-
businesses – led by demand
Entrepreneurs will not be exclusively techies
E-commerce will boom, region-wide
Advertising will make sense

19. Afterthought
This will all have happened within 24 months
Internet will be a thriving business ecology
Mobile is portable internet
The real start-up boom will have begun