Selling advertising is hard work, I know because to this day I still go on sales calls (not as much as I would like in fact). If I could do a sales call a day I would because it’s the best way to understand if you’ve got a solid business (as Cuban always told me, “sales solves everything”). Sales is the truth.
It’s hard to get folks to spend their advertising money with you given all the competition, but over the past year I’ve found that our industry has been in “taking orders” mode. That is not a dig to the sales folks, they are working harder than ever, but when > 50% of your pitches close without an in-person meeting you know it’s a sellers market.
Then I get this alert from WSJ after landing in Dallas for NAB: Yahoo shares plunged more than 10% after Chief Executive Terry Semel warned that online advertising growth appears to be slowing in some categories. Mr. Semel, speaking at an analysts’ conference, said the company has seen growth weaken in ads from automotive and financial services companies, and said it’s too early to tell if the slowdown will spill over into other areas.
So, the question we have here is are we seeing:
a) one publisher hitting a bump in the road
b) the start an advertising slump
I’m not seeing a pull-back at all, but if we are seeing a trend. What we’ve got here is a publisher reporting that their advertisers are pulling back. Advertisers pull back when they think consumers are pulling back. If advertising slows growth of busiesses slow and they stop hiring folks or lay people off. That means consumers have less to spend and less confidence.
who get From what I’ve seem the advertisers pullback before the publishers, and both of these folks pull back before the consumers. market typically goes consumer confidence dips