{"id":1959,"date":"2007-09-22T11:40:56","date_gmt":"2007-09-22T18:40:56","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1959"},"modified":"2007-09-22T11:37:05","modified_gmt":"2007-09-22T18:37:05","slug":"will-google-be-a-victim-of-the-sub-prime-mess-it-is-inconceivable-that-mortgage-related-advertising-revenue-isnt-shrinking","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1959\/will-google-be-a-victim-of-the-sub-prime-mess-it-is-inconceivable-that-mortgage-related-advertising-revenue-isnt-shrinking\/","title":{"rendered":"Will Google be a victim of the sub-prime mess? “It is inconceivable that mortgage-related advertising revenue isn’t shrinking”"},"content":{"rendered":"

Barrons:<\/a><\/p>\n

Ever since Google (ticker: GOOG) whiffed on its second-quarter earnings, fans and critics alike have been entertaining this critical question.<\/p>\n

Critics such as Barron’s Roundtable member Fred Hickey are convinced that not even GOOG can avoid the impact of the credit mess that has rocked financial markets and prompted the Fed to slash the fed-funds rate by a half point. In a recent edition of his newsletter, High Tech Investor, Hickey wrote that Google’s advertising revenues are likely to take a hit next quarter and beyond.<\/p>\n

On the other hand, a number of brokerage analysts have taken a close look at the issue and have run to Google’s defense. Jeff Lindsay of Bernstein Research recently estimated that Google’s cash flows would dip only 10% in an unlikely “worst case” scenario, and he thinks the shares could climb to 625. The stock closed Friday just above 560.<\/p>\n

Then, there’s the horse’s mouth. Late last week, Google executives told reporters in New York that mortgage-related advertisers are indeed cutting their budgets, but they aren’t expected to reduce spending on Google search ads. According to Reuters, Jon Kaplan, director of financial-services advertising at Google, declared: “People are cutting their budgets but [Web] search is not the first thing, it’s the last thing.”<\/p>\n

That comment is reminiscent of the ruminations heard before the dot-com implosion. But Google is simply arguing that its search is so effective and efficient that advertisers may cut print, broadcast and even other Internet spending, but not their placements with Google. It’s fair to assume that Yahoo! (YHOO) and AOL are likely to feel even more pain from the mortgage meltdown because they rely more on banner ads than Google, which has revolutionized revenue generation on the Web with its “paid search” technology.<\/p>\n

“Every single day that somebody is looking for a mortgage…these campaigns from these financial customers are on 24-7, 365 days a year,” says Tim Armstrong, president of Google’s advertising division in North America. “So our ecosystem actually mimics what the GDP looks like.”<\/p>\n

Granted, with a $174.8 billion market cap that dwarfs the GDP of many sovereign nations, Google might think it mirrors the Read more<\/a><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Barrons: Ever since Google (ticker: GOOG) whiffed on its second-quarter earnings, fans and critics alike have been entertaining this critical question. Critics such as Barron’s Roundtable member Fred Hickey are convinced that not even GOOG can avoid the impact of the credit mess that has rocked financial markets and prompted the Fed to slash the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,6,5,19],"tags":[],"class_list":{"0":"post-1959","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"category-marketing","8":"category-real-estate","9":"category-technology","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":10624,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10624\/yelping-googly-trulia-is-google-is-doing-some-last-minute-holiday-shopping\/","url_meta":{"origin":1959,"position":0},"title":"Yelping Googly Trulia! Is Google is doing some last minute Holiday shopping?","author":"Brad Coy","date":"December 19, 2009","format":false,"excerpt":"All this week there has been a lot of buzz around the interwebs about Google's possible acquisition of Yelp.com. The local reviews website has been wildly popular almost everywhere I have been in the country and could stand an image makeover in my humble opinion. One big enhancement could be\u2026","rel":"","context":"In "Innovation"","block_context":{"text":"Innovation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/innovation\/"},"img":{"alt_text":"4198814802_07b3bed440_m","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2009\/12\/4198814802_07b3bed440_m.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":10731,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10731\/dont-mess-with-the-google\/","url_meta":{"origin":1959,"position":1},"title":"Don’t Mess with The Google","author":"Damon Chetson","date":"December 29, 2009","format":false,"excerpt":"So back in October I launched a Google Local account for The Chetson Firm. This is an account that links your business to Google Maps and allows you to post information such as your hours, location, parking, etc. I posted some images, a link to a video I had created,\u2026","rel":"","context":"In "Technology"","block_context":{"text":"Technology","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/technology\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5894,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5894\/does-googleopoly-evil\/","url_meta":{"origin":1959,"position":2},"title":"Does\u00a0“Googleopoly” = Evil ?","author":"John Rowles","date":"December 2, 2008","format":false,"excerpt":"I have a running news search going for anything that has the words \"Google\" and \"Real Estate\" in it. More often than not, this search returns cookie cutter press releases designed to reassure agents who plunked down a credit card for a cookie-cutter Web site (\"Real Estate Agent Ollie Tabooger\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2521,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2521\/in-the-business-of-personal-relationships-database-marketing-is-more-effective-than-seo-marketing\/","url_meta":{"origin":1959,"position":3},"title":"In The Business Of Personal Relationships, Database Marketing Is More Effective Than SEO Marketing","author":"Dan Green","date":"January 30, 2008","format":false,"excerpt":"Two years ago, NAR told us that 74% of people begin their home search online.\u00a0 What they didn't tell us, however,\u00a0what percentage of those people\u00a0write paper with the agent on whose site they began said search. This omission is an important one.\u00a0 Just because a person starts online doesn't mean\u00a0he\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10879,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10879\/googles-challenge-to-chinas-communist-party\/","url_meta":{"origin":1959,"position":4},"title":"Google’s Challenge to China’s Communist Party","author":"John Rowles","date":"January 17, 2010","format":false,"excerpt":"Google's 2006 decision to enter the Chinese market on the Chinese government's terms, which include censorship, is often held up as the symbolic moment when its mantra of \"Don't be evil\" conflicted\u00a0 with a hard business reality. In the end, pragmatic capitalism won out over principle, and Google.CN was launched.\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3460,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3460\/there-arent-enough-advertising-dollars-for-zillowcom-to-go-ipo-but-adding-google-street-view-makes-the-site-a-little-more-useful\/","url_meta":{"origin":1959,"position":5},"title":"There aren’t enough advertising dollars for Zillow.com to go IPO, but adding Google Street View makes the site a little more useful","author":"Greg Swann","date":"July 23, 2008","format":false,"excerpt":"So far, in 30 months since Zillow.com launched, precisely one client has shown me a Zestimate. I mention the site all the time, just as a matter of casual conversation, but only the INTx types know what the hell I'm talking about. Last night on the the phone with Brian\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=1959"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1959\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=1959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=1959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=1959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}