The subprime mortgage implosion is spreading its radioactive dust on everything from homeowners to ratings agencies. One industry that may be forgotten is online advertising. Yes, online ads, that hot growth business that has shot Google into the stock market stratosphere may be next to report the mortgage industry fallout.
Oppenheimer Co. analyst Sandeep Aggarwall figures the financial industry accounted for $2.7 billion or 16% of all internet advertising last year. And while he still expects that number to climb in 2007 and 2008 he has lately trimmed his estimates of that growth. He estimates the mortgage sector in particular accounted for 3% of Google’s revenues, 4% of Yahoo and 45% at Bankrate Inc. Bad news too for Barry Diller’s InterActive Corp., which owns mortgage site Lendingtree.com.