It is interesting to see what the full impact will be on technology companies especially comsumer based companies like Google , Yahoo , Apple. I think that a looming recession in the States will impact not only US based companies but tech companies globally.

The increase in web ad spend in recent times will probably still continue to rise but at a slower pace then previous years. This coupled with increased competition as well as more publishers will hurt many playing in this space. As CPC rates drop many will instantly see a decrease in monthly revenue. This will also create a knock on effect with spending as publishers tighten up their belts and buy a Prius instead of a Hummer.

I am sure there will a few tweats on the advertisers side as well to increase profits thereby driving the Ad giants to do the same. We are going to have to get more creative in order to generate more profits in this space. Already we see Google changing its policies with regards to domain tasting. this will definitely hurt them in the short to medium term. On Yahoo’s side the layoffs with help keep them on a good running but they could also be opening the door to some competition as I am sure some key people on their side are looking at starting a venture in the Ad space.

Microsoft like the rest will feel the same pain from their web initiatives but I think overall they will continue to do well because they focus on so many verticals.

My suggestions would be

1. Look to the mobile ad space as there are more mobile phones on earth then PC’s

2. Leverage the mapping technologies to provide adpsace

3. Provide free PC’s to 3rd world countries and encourage small businesses there to use the internet (Just a wish)

4. Look at expanding your offerings like aquiring some business tools that your userbase could leverage. 

The full impact of a recession moving forward will propably be seen more towards the 3rd quarter of 2008  as people will slow their spending habits not drastically but carefully so as to not totally impact their lifestyles.

For those of you that have money keep it close and wait for bargains it will be coming.

[?]
Share This