February 11, 2009 2:12 PM
- Text
UBS Lowers Q3 Estimates For Online Ad Revenues; Offline Still Looks Worse
(PaidContent.org)
This story was written by David Kaplan.
Given the continued downward spirals in the world's financial markets, UBS internet analyst Ben Schachter says the firm is lowering price estimates for online ad revenues ahead of the Q3 earnings report period. Still, it may be at least a small consolation that offline looks worse and some web-based companies could benefit as more companies look to cheaper and more targeted online ads. In an analyst note (PDF, not online), Schachter said that while the first two months of Q3 "were decent," September proved difficult.
He sees all companies being negatively impacted to some extent, but continues to believe that Google (NSDQ: GOOG) is relatively better positioned than the others because of its dependence on search, which remains more attractive to marketers than display. In particular, UBS expects Google's 3Q results will likely be slightly below consensus expectations. Softness in the display ads in Q3 has made UBS take a "cautious" view on 3Q results from Yahoo (NSDQ: YHOO) and ValueClick (NSDQ: VCLK).
By David Kaplan
Given the continued downward spirals in the world's financial markets, UBS internet analyst Ben Schachter says the firm is lowering price estimates for online ad revenues ahead of the Q3 earnings report period. Still, it may be at least a small consolation that offline looks worse and some web-based companies could benefit as more companies look to cheaper and more targeted online ads. In an analyst note (PDF, not online), Schachter said that while the first two months of Q3 "were decent," September proved difficult.
He sees all companies being negatively impacted to some extent, but continues to believe that Google (NSDQ: GOOG) is relatively better positioned than the others because of its dependence on search, which remains more attractive to marketers than display. In particular, UBS expects Google's 3Q results will likely be slightly below consensus expectations. Softness in the display ads in Q3 has made UBS take a "cautious" view on 3Q results from Yahoo (NSDQ: YHOO) and ValueClick (NSDQ: VCLK).
By David Kaplan
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