How Bad Will It Get, Google?

Online advertising is a no-brainer for a global slowdown, right? Yeah, but not as much as it used to be. PricewaterhouseCoopers and the Interactive Advertising Bureau (IAB) last week reported that third-quarter revenue from digital ads rose 11% year over year, but just 2% sequentially.

I know how that sounds to most Fools; sequential growth can be a red herring for the long-term investor. Here, it's important because it means ad buyers are at least tapping the brakes. Sequential gains were a reoccurring tailwind blowing from Google's (Nasdaq: GOOG  ) Silicon Valley headquarters.

How bad will it get? "A weakening economy will continue to be a challenge to all forms of advertising-supported media," David Silverman, a partner at PricewaterhouseCoopers LLP, said in a statement. "However, the Internet should be better poised to withstand the storm, given its ability to combine performance-based advertising along with broad-based branding."

So Google is still a media mogul, and New York Times (NYSE: NYT  ) , Gannett (NYSE: GCI  ) , and McClatchy (NYSE: MNI  ) are still doomed.

Or at least, that's how it seems. An IAB executive I spoke with last week couldn't say much, other than what's in the group's press release. Nor could she offer context for what digital advertising is working, and what isn't.

Not that we need much. Display-ad leader Yahoo! (Nasdaq: YHOO  ) isn't any better today than it was last week, or the week before. Who needs GooHoo, anyway?

Get your clicks with related Foolishness:

Google is a Rule Breakers recommendation. Join the search for the next great multibagger free for 30 days. There's no obligation to subscribe.

Fool contributor Tim Beyers had stock and options positions in Google at the time of publication. The Motley Fool's disclosure policy gave up on advertising long ago.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 782088, ~/Articles/ArticleHandler.aspx, 11/26/2014 1:46:24 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement