Can Google remain immune to global financial crisis?


Will Google be immune from the current global financial crisis which is considered as the worst since the Great Depression? Will “advertiser of last resort” be financially viable to the cash crunch advertisers, who are taking all steps to save their last penny.

Let us see some of the latest news that is going to throw some light on the present situation:

  • Yahoo announced this week that it is going to layoff 10% of its employees.
  • Adbrite is going to layoff 40 of its 100 employees
  • Online ad spending in Britain went down from $575 million to $497 million in the first 6 months of this year. Remember, Britain is the most advanced market for online advertising.

In the beginning of the crisis it seemed that online ad spending might not be affected as advertisers would prefer online advertising then newspapers, television or radio. Looking at the present state of affairs it does not seems true. The financial crisis is so unpredictable that nothing can be said for sure. It will be foolish to say that some companies might not be affected by it. In reality some will be affected more and some less but the pain of the crisis will be felt by all. Google is going to be in the later category.

Companies cannot stop advertising altogether in spite of the financial mess they are in. More and more advertisers would rather shift their spending online where they can have a complete control over the spending and conversions. Google’s text ads is targeted, relevant and overall could be measured which is why it will be their favorite choice.

One advertising medium that is likely to be hit hard due to present financial crisis is ads used for the branding purposes. This might include banner, video, interstitials, popups ads where conversions is hard to measure.



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