Internet Recession Watch: Valueclick Sees Advertising Drop
July 17th, 2008 by Benjamin KuoOn the “when will the recession hit the Internet front”: today, Westlake Village-based ValueClick announced it was reducing second quarter estimates due to a drop in Internet advertising — specifically, lackluster growth in display advertising and a steep dropoff in lead generation advertising. Despite what seems like boom times in technology today, it’s pretty clear that subprime mortgage loans, record setting foreclosure levels, runs on the bank, gas prices and (maybe the most impactful on the technology pros out there) the closure of Starbucks stores everywhere — that the economy is not in a happy place. The question is: how far and wide will dropping CPMs and lackluster retail activity hit online businesses?
