Stomach Churning Test For Online Advertising

Posted: September 19, 2006 in Uncategorized
Yahoo’s announcement this morning of a possible slowdown in auto and financial advertising is a stomach churning test for online advertising.
But, a slowdown in these areas makes sense to me:  With gas and interest rates going through the roof, we’re all feeling like driving and refinancing less.
The questions are: 
*  What other parts of the economy are slowing or growing and how will that affect advertising?
*  Is this a competitive issue?  Microsoft crowding in?  2nd tier players getting particularly aggressive?
*  Is this solely a YHOO execution issue?  They have been having their challenges of late.
Time (as always) will tell.  Welcome to the rollercoaster.  Ugh.
  1. Unknown says:

    Good questions let me attempt to answer your last:
     Yahoo emerged from the .com explosion as a top dog.  But as more
    sites opened "ex: Google" Yahoo isn\’t receiving the hits they used
    to, (at least % wise.)  In addition, being locked in a competitive
    struggle with Google, and other jump start companies nipping at their heels, Yahoo\’s
    struggles are principally Yahoo\’s.  Could this slowdown be experienced
    other places?  Nothing in the future is certain, some effects may be felt
    elsewhere, but the majority of the trouble rests with Yahoo. 

  2. Unknown says:

    Others selling ads to the auto world were already complaing and looking for better ways to target.  I recommend a quick look at the Aug 11 article at MediaPost\’s Behavivoral insider: 
    I particularly like how they mention advertising on pages about specific makes/models of cars are sold out; other pages are weak, so they\’re finding new ways to test behaviors to drive higher CPM still, including perceived intensity of an in-market customer.  This points directly to your Sept 25th entry above, near the bottom "more to the point": these are the very things that make online superior!

  3. Unknown says:

    One more comment:  Advertising Age reported Sept 25 that "Chrysler plans major inncrease in second-half ad spend."  According to Chrysler Group CEO it is "going up dramatically" and more than doubling first-half spend in certain months.  They didn\’t say where the increase in ad spend would be going — TV?

  4. Royal Farros says:

    William, great stat about Chrysler.  Where will these dollars go?  To where they\’ll be most productive:  Online. <smile> 
    (Also, see "15% is a Magic Number" post discussing Ford increasing their online spend to 15% a year or so back.)