6/01/2006
Are Google and Yahoo tied to the Housing Market?
Henry Blodget links the cyclical nature of the advertising industry to the housing market. That means that when the housing market goes down, the advertising world starts to cool off as well.
¶ 6/01/2006 He surmises that some people think that Google and Yahoo should be more insulated than others because advertisers (should) know their ROI from their spend at Google and Yahoo.
I think Google and Yahoo are both vulnerable - Yahoo more so because of the brand advertising stable of customers that drives its profits. However, as I've posted on in the past, I think the decline of the mortgage lead market will hurt them both when things slow down.
In other words, I agree with Blodget and I don't think Google or Yahoo are very insulated from the usual advertising cycle. When it comes, it will hurt.
