Yahoo Sees Weakness In Advertising

Yahoo notices the spend on advertising is dipping:

Yahoo Inc. – said on Tuesday it expects third-quarter revenue to be at the bottom half of its forecast range due to weakness from two of its biggest advertising segments, sending its shares down as much as 13 percent…Yahoo has seen “a little bit of weakness in the last few weeks” in auto and financial services advertising,“.

New trend or blip? If it’s limited to the finance and auto industries, then that probably doesn’t say a whole lot. Also, this appears to be banner advertising, as opposed to keyword advertising. If so, Google probably wouldn’t be much affected as their search marketing business revolves around smaller advertisers over a wide range of sectors.

In a related note, SEM clients apparently not as plentiful as they once were:

there is apparently a considerably smaller growth (or even a decline) in the number of clients hiring SEM firms: …year-over-year growth in terms of total client accounts for 104 surveyed firms is slowing considerably. The number of clients who are willing to pay for top-of-the-line services is still increasing, but smaller clients are not increasing“.

Maybe, but then you’ve got to wonder about the sample size of these reports.

  1. dburdondburdon09-21-2006

    Peter,

    the second link’s not working. Sounds like an interesting read.

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