Skip to main content

Death of display ads greatly exaggerated

An article on Reuters today (US Web ad spending nears $10 bln in first half '07) discussed how ad spending on the Internet continues to increase, putting pressure on other media like newspapers, TV and radio.

This is a quote from the last two paragraphs:

"Search advertising, led by Google, remained the most popular form of online marketing and accounted for 41 percent of the money spent at $4.1 billion in the first half of 2007.

Graphic display advertising, such as banners, grew to account for 32 percent at $3.2 billion, compared with $2.4 billion in the year-earlier period."

There has been much discussion on financial blogs about how display advertising is losing ground to other kinds of ads, how it is hopelessly Web 1.0 and that companies dependent on display ads are doomed. Yahoo is usually mentioned in these discussions as a prime example of a site dependent on display ads and, as if to prove the point, we all know how badly Yahoo is doing these days.

The fact that display advertising spending has increased by one third over the previous year shows that display ads still have considerable life left in them. Witness Google buying DoubleClick for over $3 billion dollars; after all, a large part of DoubleClick's business is serving display ads. Google realizes that display ads are a necessary part of a full-service ad platform and, combined with search advertising (Google's specialty), display ads will allow the company to extend its reach with advertisers and publishers.

Yahoo's problem is not that they are dependent on display ads; Yahoo's problem is that they are not executing as well as they should be in other areas.

Disclosure: author owns no shares in GOOG or YHOO

Comments

Popular posts from this blog

Brazil - in a bubble or on a roll?

A couple of years ago, no one recognized the real estate bubble even though it was under everyone's nose. Now, analysts and bloggers are seeing bubbles everywhere they look. One of them, they say is in Brazil whose Bovespa stock market index has doubled in the last 12 months. Does the bubble accusation hold water? I don't think so and here are 7 reasons why Brazil is by no means a bubble economy: Exports have held up over the past year thanks to demand from China for Brazil's soya exports and iron ore. This was helped by the the Brazilian government's drive to improve trade links with Asia and Africa. Export diversification, spurred by a more active trade policy and increased focus on "south-south" trade under current president Lula, helped mitigate the decline in demand from OECD (Organization for Economic Co-operation and Development) countries A "sensible" economic framework has been in place since the 1990's. This has included inflation

Thursday Bounce: Trend Busters, Swing Signals and Trend Leaders for July 9, 2009

This is a quick post to announce that we have published Thursday's Trend Leaders, Swing Signals and Trend Busters at Alert HQ . All are based on daily data. Today we have the following: 72 Swing Signals -- A couple of days ago we had 35 signals, today we have twice as many. Happily, we now have 65 BUY signals, a mere 4 SELL Signals plus 3 Strong BUYs. Whoo-hoo! 56 Trend Leaders , all in strong up-trends according to Aroon, MACD and DMI. There are 18 new stocks that made today's list and 60 that fell off Tuesday's list. 48 Trend Busters of which 5 are BUY signals and 43 are SELL signals The view from Alert HQ -- Talk about mixed signals. If you look at our Swing Signals list you would think the market was in the middle of a big bounce. BUY signals are swamping the SELL signals and we even have a few Strong BUYs. Yes, there's a good sprinkling of tech stocks and tech ETFs but the distribution is pretty broad-based with a good number of different sectors represented, eve

Trade Radar gets another update

Some of our data sources changed again and it impacted our ability to load fundamental/financial data. In response, we are rolling out a new version of the software: 7.1.24 The data sourcing issues are fixed and some dead links in the Chart menu were removed. So whether you are a registered user or someone engaged in the free trial, head over to our update page and download the latest version. The update page is here:   https://tradingstockalerts.com/software/downloadpatch Contact us if you have questions or identify any new issues.