Got Ads?
5/15/2005
  Is Google too dependent on mortgages?

How much of the CPC and CPM ad market depends on interest rates? More than you may think since mortgage re-financing ads comprise at least 20% of ad volume in total dollars. The high prices of mortgage related ads mean they contribute a lot to the bottom line of Yahoo and Google.

This graph from searchnewz puts the Fathom Online keyword pricing survey into perspective. The red line represents the cost of mortgage related keywords, and they are at least twice as expensive as any other category. I wonder how much of Google's and Yahoo's recent quarterly profits were directly from mortgage ads. I'd guess at least 35%.

The funny thing is that the internet itself can take some credit for low interest rates (remember "The New Economy"?). The internet is largely responsible for a higher productivity increase over the last 10 years which has helped the economy, kept inflation at bay, and helped convince Alan Greenspan to not raise rates as fast as he otherwise might have.

However, the mortgage refinancing process is fairly cyclical. As it begins to wane, it's unlikely that any other category will replace it's total contribution to profits. Isn't it?

 




<< Home

Subscribe to GotAds?



Links



Recent Posts

Is Google too dependent on mortgages?


Archives

February 2005 /  March 2005 /  April 2005 /  May 2005 /  June 2005 /  July 2005 /  August 2005 /  September 2005 /  October 2005 /  November 2005 /  December 2005 /  January 2006 /  February 2006 /  March 2006 /  April 2006 /  May 2006 /  June 2006 /  July 2006 /  August 2006 /  September 2006 /  October 2006 /  November 2006 /  December 2006 /  January 2007 /  February 2007 /  March 2007 /  April 2007 /  May 2007 /  June 2007 /  July 2007 /  August 2007 /  September 2007 /  October 2007 /  November 2007 /  December 2007 /  January 2008 /  February 2008 /  March 2008 /  April 2008 /  May 2008 /  June 2008 /  July 2008 /  August 2008 /  September 2008 /  November 2008 /  December 2008 /  January 2009 /  March 2009 /