Mortgage meltdown - to spread to online ads?

Posted Sep 24th 2007 3:57PM by Tom Taulli
Filed under: Google (GOOG), Yahoo! (YHOO)

In a recent piece on C/NET, there's some chatter that the mortgage mess will ultimately lower online spending -- taking some of the wind out of biggies like Google Inc. (NASDAQ: GOOG) and Yahoo! Inc. (NASDAQ: YHOO).

Hey, just based on my own browsing, I'm not seeing many mortgage banners. So should we be worried?

I had a chance to interview Frank Addante, who is a veteran of the online advertising world. He sold one of his companies to DoubleClick and his latest gig is The Rubicon Project.

According to him:

"Comparing today's ad market to the online ad market of 2001 is rubbish. The online ad market in 2001 was fueled by dot-coms spending VC money. Back then I invested years working to get major traditional advertisers to understand the opportunity and spend money online and today, they do. The current market is more diversified and as a result more resilient to changing market dynamics.

"The fact remains that 33% of consumer time is spent online today. However, only 5% of advertising budgets are spent online. What's significant about that? It means advertisers are spending money in places where people aren't.

"Further, 30-50% of U.S. based websites' traffic is coming from international consumers. Today, much of that international ad space is wasted. It's as though websites are throwing it in the trash, but not intentionally."

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements.

Tags: banner advertising, BannerAdvertising, GOOG, Google Inc., GoogleInc., mortgage, Online advertising, OnlineAdvertising, Rubicon, The Rubicon Project, TheRubiconProject, Yahoo! Inc., Yahoo!Inc., YHOO

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Reader Comments (Page 1 of 1)

9-24-2007 @ 4:39PM

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