The global economic slowdown has led to cut in media advertisement spending for sure, but internet company Yahoo is sees a silver-lining.
And in some sense, recession in advance markets may be a blessing in disguise for such companies as advertisers shift ad spend from television and radio to internet.
Yahoo’s Co-Founder and Chief David Filo confirmed the trend. “Advertising. while there may be slow-down….it’s not going away”, he told reporters on the sidelines of Yahoo India R & D-organised second Open Hack Day in India here.
There are other factors, he said. “People consume increasingly more and more internet”, as opposed to television and radio, he argued. “People are moving that attention (from television and radio) to internet; that shift is going to increase (further)”.
Particularly in times of economic slowdown, advertisers are shifting their ad spend to internet, Filo said. Internet advertising is “measurable” and, so, advertisers are “much more amenable” (to put more dollars into internet advertising)”.
CEO of Yahoo India R & D, Sharad Sharma, said broadband access in India needs to improve, while PC penetration needs to be much faster. “Internet growth is modest (in India)”, he said.