Rohan Predicts Ad Revenue Will Take A Hit
News that has broken today may affect some industry leaders as RBS analyst Jordan Rohan said financial advertisers are cutting spending and he expects Bankrate (RATE) will suffer a hit from this, according to a report in The Silicon Alley Insider. Also Comcast announced that macro economy has greatly decreased since Q3.
The report continues to say that this information is bringing the publication’s predictions to pass. The SAI has spoken, as many have been speculating, for a few months now that advertisers would not respond to the weakening mortgage space by increasing their ad spend.
Rohan claims that all companies that are dependent on ad revenue are at risk, including the big fish. Although Rohan and SAI don’t believe that the online ad business will be invincible when it comes to the recession.
With budget and cuts and staff downsizing (E-Loan has let go of 67% of its staff), Rohan predicts in the report that online spend could be reduced by 20%-50%. It’s time to hit the shelter because the bomb is falling out of the sky.
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