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Will the Mortgage Mess Hit Online Advertising?

Posted by: Rob Hof on August 27, 2007

Rafat Ali at mentioned the possibility a couple weeks ago, but a Financial Times article raises the issue anew: Will the subprime mortgage meltdown singe online advertising? Given that mortgage lead generators such as LowerMyBills, not to mention lenders themselves, are among the largest online advertisers, it sure seems possible. It’s also possible that there’s such a long tail in online ads, and generally so much advertising is moving online, that the impact won’t be that great. But I wouldn’t count on it. Advertising, after all, is the prime business model not only for giants like Google and Yahoo, but for nearly every aspiring Web startup in the land.

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