Yahoo Warns of Slowing Internet Advertising Sales 83
narramissic writes "Yahoo chairman and CEO Terry Semel warned that a slowing U.S. economy is starting to impact ad sales, particularly in 'autos and financial services.' But Yahoo was careful to note that it cannot tell whether the current slowdown is a sign of broader trouble or is limited to ads from the auto and financial sectors."
Surely... (Score:2)
(IANAEconomist)
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What are the stats? I am not sure, but from my limited reading, it appears that a variety of factors stemming from increased fuel prices and continued international unrest in the middle East appear to
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The slowdown has already started (Score:2)
What makes me mad though is that US companies need all the info they can get to enable them to ride out this slowdown with minimal losses, yet the government is currently hiding the truth purely for political reasons. Come December when they actuall
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Just assembled a comment [slashdot.org] in another thread in this story; you might find something interesting there too.
This economic correction will be hard to ride out - think "greater depression". A real 'new economy' is coming our way, but the old one's leaving kicking and screaming...
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I recently decided I need a 4 door, and had to go through this process again. It was...much changed. Every vendor within 50 miles called me up to quote m
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p $8000 under MSRP or $4000 under invoice sounds good, but when you're after a basic no-frills model the reality is that they're not marked up that much and you can only talk the price down so low. I got my Accord for just over $17,000 (not including tax) and even though it has no options, the standard features are sufficient for
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The article doesn't match the summary (Score:2)
Boo Hoo (Score:2, Interesting)
Quicker damn you, grow quicker...
On the other hand... (Score:2)
-- Consider:
Yahoo's projection of advertising growth was a bit over enthusiastic --> Yahoo investors show their disappointment with the purse --> Yahoo attempts to save face by characterizing their own messup as an (exaggerated) general market trend --
Less auto/finance ads ... are bad? (Score:5, Insightful)
1) Cars: auto sales are currently a big cartel. Every state has regulations stopping or significantly shackling internet sales of new cars. All that auto dealerships now offer you is the degrading process of "oh, gee, I dunno, I'm gonna have to talk to my boss about that offer you just made" and "here is a payment plan we can offer you in which I'll only talk about the monthly payments and hide the effective 14% interest rate that amounts to".
2) The financial services industry basically revolves around convincing people to invest with them to "beat the market". They thrive on artificially increasing the complexity of investing. I've had a financial advisor tell me that my investment plan is going to look "totally different from the guy in the next cubicle". Yeah, same age, same investment horizon
We really do need less of these ads. Is there something bigger I'm missing?
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Don't forget 14% auto loans.
KFG
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It's true that dealers will try to funnel all negotiations in that direction, but if you're firm they will negotiate price and finance interest rate separately (firm means be prepared to walk out). Get pre
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I understand all that, but I think you missed the central point:
You shouldn't have to "be firm" or whatever. You sho
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Everyone who buys a car mails a copy of their receipt to a central site which puts it in a database, with all relevant information. If you want to buy a car, go to the site, pick the model, and start looking through receipts and figure out what y
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Dude, if a dealer will deign to lower his price because you could confont him with the outside offer, he was charging an unjustifie
canary in the coal mine (Score:1, Interesting)
Short history lesson: Federal reserve started to inflate the money supply [aol.com] in early 1995 (blue line in the graph). The 'tech bubble' followed a couple years later. That trend wasn't sustainable, and the dot-coms bombed sometime in 2000/2001. The economy was well on its way to a recession by late-summer/fall 2001. The Federal Reserve responded to "9/11" by cutting interest rates to 1% (over several months), supposedly for the purpose of 'stimulating' the economy
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I'm not trying to badger you,
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I guess there's nothing stopping the formation of cooperatives, so much as that the system is set up to favor the formation of corporations. This includes corporate privledges (for example: no shareholder liablity for corporate fuckups - government picks up the tab if the corporation leaves a big mess after it dissolves), and a school system designed to create worker-drones (see Gatto link in original post).
Al
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Because my CPU usage pegs at 100% whenever I leave a browser window open showing one of those inane ads depicting a lactating sow with 50 teats, and a suckling piglet for each state of the USA.
I could easily make do without those kinds of Internet Advertising, TYVM.
hmm (Score:3, Interesting)
Anyone have google's ad revenue relating specific to these areas?
Re:hmm (Score:5, Interesting)
Anyone have google's ad revenue relating specific to these areas?
Here's some data [google.com] you can look at. Google looks to be doing quite well actually
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Adblock? (Score:1)
could the adblock utilities have any effect on this? i think we've all known that if everyone used adblockers, we'd have a big problem: free sites would no longer have any income. we havent really worried about it because it didnt seem like enough of us were using them to make a difference.
could this be the first sign?
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could this be the first sign?
No, this is about selling the ads. Getting people to see them is step 2. If too many people use adblockers, you will need to spend a lot more effort at getting non-adblockers to see them, incr
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You are a sick and twisted individual.
Unfortunately, you have a bright future ahead of you in advertising.
Cheers
Dave
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auto and finance both subject to rate pressures (Score:5, Insightful)
Mod parent up (Score:1)
The Fed does not set interest rates. (Score:2)
Contrary to popular belief, the Fed has very little latitude in setting interest rates because interest rates are market driven. The government finances a portion of its debts through borrowing (issuing bonds) and must consequently pay whatever the lowest bidder offers. See: How Treasury Auctions Work [treasurydirect.gov]
Two words... (Score:2)
housing bubble [cnn.com].
For those of you that don't think this can affect the economy across the board, just remember the tech bubble from a few years ago.
Indeed... (Score:2)
happened to Japan back in the early 90's when the Nikkei took a serious nosedive.
To be sure, it was only one piece of the bubble, but the land being seriously
overvalued (as much as 14 times it's current values, which are still dropping...)
and the sudden cooling of the economy by the government triggered a spiral they're
still trying to recover from- and the land/property bubble made it much, much
worse than it probably ought to h
More accurately... (Score:2)
Hmmmm (Score:3, Interesting)
Gads, where does one begin? (Score:4, Insightful)
Also, US Economy != World Economy, influences be damned. Is the global economy slowing overall, or no?
After RTFA, I think someone was trying to short some Yahoo stock more than make an accurate forecast...
Re:Gads, where does one begin? (Score:5, Informative)
And yes, IAAE (at least that's what my degree is in, I don't work professionaly as one).
Re:Gads, where does one begin? (Score:4, Funny)
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1. The economy was slowing down in the wake of dot-com (which was really as much biotech) mania and they wanted to be sure to pin this on Clinton
2. A justification for big top-heavy tax cuts
Then 9/11 came along and solved all those tricky public perception issues (also pre-empted Chi
My fault (Score:5, Funny)
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Not so fast (Score:1)
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64% of the US budget is military spending (Score:2, Informative)
http://www.thebudgetgraph.com/ [thebudgetgraph.com]
Most of it is paid by borrowing rather than taxation, but the increased money supply simply kicks inflation and therefore interest rates into high gear. It'll get worse as the Arabs liquidate their dollar holdings.
What? (Score:2)
You really might want to read This [cbo.gov] first... 64% of total sounds more than just a bit too big of a number, 'mano. (the site you supplied may explain why... I'm not Bush's greatest fan or anything, but man - propaganda is propaganda, no matter what side you view it from)
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(Not to trivialize defense spending of course -- in absolute terms, it's big.
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That site, and their graphs, tell a lie. (Score:2)
That's like me telling my wife that we have to cut back on groceries and diapers, because they consume 84% of our discretionary spending. Meanwhile, I'm spending 8 times as much on heroin, crack, hookers, and video games and calling it "non discretionary".
Social Security and Medicare are going to bankrupt us a lot faster than tomahawk missiles.
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Someone who wanted to show how income tax was spent?
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Last year military spending last year, at $494 billion, which exceeded combined Medicare and Social Security spending by $16 billion. Military spending also has a far higher growth rate... and will grow at an even more rediculous pace if George Bush desides to pick a fight with Iran.
At least social security and medicare have thier own dedicated source of funding. To fund all those tomahawk missles, we are borrowing mon
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Why advert with Yahoo when you can MySpace it?! (Score:2, Funny)
Two options (Score:3, Insightful)
2) Yahoo are getting a smaller slice of the advertising pie
If you were the CEO, which option would you talk about?
Weak economy is a weak excuse from Yahoo! (Score:3, Insightful)
Here's a few points:
- Did you know that just over the past 11 quarters, dating back to the June 2003 Bush tax cuts, America has increased the size of its entire economy by 20 percent?
- In less than three years, the U.S. economic pie has expanded by $2.2 trillion, an output add-on that is roughly the same size as the total Chinese economy. (so much for the "China is going to surpass us anytime soon theory - ed.)
- Since the 2003 tax cuts, tax-revenue collections from the expanding economy have been surging at double-digit rates while the deficit is constantly being revised downward.
Housing MAY cause some short-term pressures (though I think this will be more isolated than is being reported) but it certainly isn't going to cause the economy to come to a halt. Maybe Yahoo should take a look at Google's numbers which, if I'm not mistaken, are doing just fine on the ad revenue side. Perhaps Yahoo should take a look in the mirror before proclaiming this is a US economic problem. When all the indicators show that online advertising rates industry-wide are down for multiple quarters I'll listen. Until then, this looks like short-term CYA by a CEO to help explain why his SG&A and EBITDA are not meeting the numbers the analysts want to see next quarter.
Housing may cause short-term pressures? (Score:1)
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Huh. That kind of makes me wonder where the money goes. I don't personally know anybody who is better off (especially taking inflation into account) as they were then.
I wonder what is included in "Financial Services" (Score:3, Interesting)
One of the most frequent (and annoying) class of advertisers I see on Yahoo are the seedy mortgage brokers, with all their ads for "teaser rate" interest only adjustable rate mortgages.
Now that the bottom is falling out of the mortgage industry, the brokers are getting more desperate for new suckers, er I mean "clients". There are less of those to go around and naturally the advertising is going to fall off.
Maybe Yahoo should just lift their prohibition against advertising porn. I bet they are leaving a lot of dollars on the table by not being willing to have a crotch shot on their home page. At least that industry is more ethical than the people who have been selling negative amortization adjustable rate mortgages on over assessed homes to people who least understand (and can least afford) what they were being set up for.
Getting Real? (Score:1)
Yep, looks like a definite downturn... (Score:2)
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Maybe not just the economy (Score:2)
I wouldn't be surprised at all, if that means Yahoo is seeing less ad revenue.
those two industries are.. (Score:1)
Cars. Again, saturated with all sorts of vehicles people don't want, and
Other reasons? (Score:2)
Maybe these advertisers have actually realized that Yahoo! actually sucks.
Ya who? (Score:2)
Or limited to Yahoo's sales of auto/financial ads, perhaps because of a lack of response from Yahoo users. Or maybe online advertising is just ineffective, and those two sectors are simply the first to realize it. Or maybe it's just a completely meaningless fluke. Thanks for clearing that up for us, Yahoo.
The problem is Yahoo (Score:2)
The problem isn't the economy, it's Yahoo. I hate it when someone says, "Oh but they're a mature company, their sales are flat." There's no such thing as a mature company, there is only a company that has forgotton how to innovate. Yahoo's advertising system is a disaster. Especially their "ad sense" killer which bombed horribly.
Yahoo's problem is itself, period.
Ha ha ha ha (Score:2)
The finance boards have turned into a sewer.
If all you have left is the chucks, the 13 yr olds, and the drunken profane bloggers, just _who_ are you going to sell _FINANCIAL SERVICES_ to?
EH? TERRY?
My gawd, someone needs a fr0h slap.
The next Yahoo advertising push is "What would life be like without Yahoo?"
Well, I'll tell ya