Subprime Fallout Could Impact Internet Advertising Revenue
For all you bloggers out there as well as anyone interested in the economics of the net in general, the Financial Times is reporting on the potential fallout of the subprime mortgage implosion reaching the internet in terms of decreased advertising revenue.
It makes sense if you think about your online experience. How often have you seen “Low Mortgage Rates” or “Get a Free Credit Score” advertised on the side of your screen? The fact of the matter is, this will likely adjust going forward.
As an example, Countrywide Financial, the largest mortgage lender in the U.S. in 2006, which recently nearly went belly up, was a top-10 Internet advertiser last year. These expenditures will likely be cut back.
Filed under: Social Mood, Economics
If you talk to anyone who was making a living from web sites during the dot.com bubble, you will hear a story about how a day job was narrowly escaped after the crash. It got pretty bad.
Housing busts tend to last longer and have more severe consequences on the economy than equity busts. It will be interesting (and painful) to see how this one plays out.