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Online ad business takes a hit in Q2

Posted Jul 17 2008, 03:05 PM by Kim Peterson
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The online advertising business is looking pretty bleak today, ahead of Google's earnings report, as two companies signal a difficult selling environment. That doesn't look good for Google or Yahoo.

Shares of ValueClick have dropped 20% today after the company slashed its revenue and profit expectations for the year. The news sent shares to a three-year low. ValueClick blamed "increasing macroeconomic uncertainty" for destroying the seasonal boost in ad spending normally seen in the second half of the year. Some analysts think ValueClick's own issues have something to do with the news as well, however.

LookSmart shares have also plummeted, falling 23% after the company announced "unanticipated softening in search advertising demand." Quarterly results aren't out yet, but LookSmart warned that revenue would be more than $1 million short of Wall Street's estimate of $18.2 million.

Google shares are down 1% today to $530. We'll see how its quarter fared later this afternoon.

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Comments

 

My firm at one time spent 18 to 23G per month on clicks and banners. We now shifted that to almost all traditional advertising. We found the systems began to take advantage of the client, and service was replaced with an arrogance not worth the aggravation.

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