Financial crisis impacts online advertising, media companies

October 11 filed in economy, web

Online media publishers that cover technology often depend on big-tech advertisers (Intel, Microsoft, Oracle, Symantec, etc.). If those companies suffer on Wall Street – which they have – or in product sales due to shrinking consumer or enterprise spending, rightly or wrongly, some marketing and advertising budgets at big-tech companies will have to be scaled back.  While projections have been refactored to account for economic realities, the numbers are still in positive territory.

According to Clickz, “New figures from Wachovia has web ad spending growing by 10 percent in 2008, down from a previous prediction of 15%. Lehman/Barclays have are pegging growth for the year at 16.9% rather than 23.4%.”  Nevertheless, it would be a tad naive to not expect some firms to take a hit.

If history is any indicator at all, impacts will likely be felt in the form of resource reductions at some media companies that rely on advertising supplied by publicly traded firms. But, for the lucky ones, this can also be an incredible opportunity for growth and investment.

I don’t necessarily see it as a glass half full or empty, just a cyclical, scary reality that happens every decade or so. We aren’t yet where we were in mid-2002. Let’s hope we can start to slide to the bottom soon and slowly begin to work our way back up. We need some leadership.

To have this crisis hit right when a lame duck president was throttling down his tenure couldn’t have been worst timing. Then again, the administration really has nothing to lose at this point except their long-held ideologies.

In terms of predictions, I think 2009 very well could be the year already anemic US print newspapers begin to fold at an accelerated rate.

One Comment

  • kris

    October 11 5:43 pm

    hey bro – 3 months until we’re related. come see us in las vegas on january 30th at the elvis drive thru chapel, 7pm, don’t be late. bring that adorable olivia PLEASE and super genius miranda. can’t wait to see you again and meet my new family…

    in all seriousness, garth is on the phone with me and sent me to your website- and we need your mom’s email address as garth is pretty disorganized and can’t seem to recall or find it. and, oh, hi eric. hope all is well in california, your daughter is beautiful- and garth REALLY did script all that was written above- you know how your brother is…

    he’s moving here this weekend, but don’t worry, as soon as this market turns around, we’re outta florida :O)

    hope we meet again soon ~ it was fun going blue with you (from west to east baby)!

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