Hard Times Ahead for Web Advertising

This article talks about the negative impact that the economic hard times will have on the tech sector. Cowen and Company Analysts, Kevin Kopelman and Jim Friedland have spoken and aired their opinions on the matter.

The favorable times at Google High are turning into hard times in the future. With economic hard times becoming a hot topic for discussion these days, the forecast for the tech sector is just as unfavorable, if not more. Analysts are reducing their estimate on organizations and expect the spending on search advertising to be stagnant. They are also anticipating that display advertisements will be hit quite hard, and the share of search market share will shift as well. Cowen and Company Analysts, Kevin Kopelman and Jim Friedland, are reducing their estimates on tech giants such as Yahoo, Google and others according to a CNET report. These analysts said “We are lowering our estimates on Google, Yahoo, Amazon, VistaPrint, eHealth, Blue Nile, and Gmarket to reflect: (1) a weaker macro outlook exacerbated by the bank crisis; (2) the rapid rise in the dollar over the past two months; and (3) the impact of the (0.5 percent) rate cut on interest income”

They are also of the opinion that budgets for search advertisement spending will not change and remain intact. According to Jim Friedland and Kevin Kopelman “However, we think the growth of paid-search budgets–and therefore Google’s revenues–will be lower than expected, as smaller overall ad budgets will limit the ability of advertisers to meaningfully increase search spend. We also believe that display advertising could experience negative growth (we are projecting mid-single-digit growth in 2009), which would weigh heavily on Yahoo”. And organizations that will suffer the most by this are Baidu, Google, Answers.com, Local.com, and InterActiveCorp.

Our team of expert researchers put together a church website builder reviews guide for you to make an informed decision.