Web business downturn nips Yahoo
Of all things. The grandaddy of web portals is feeling the heat of the web advertising downturn and, along with it, the downturn in the larger economy. Folks just aren't buying web ads. On top of that, Yahoo's CEO, Tim Koogle, is stepping down.
Yahoo's trouble serves as one more reminder that web advertising dollars are some of the first to dry up when recession looms:
``All businesses in the United States are facing challenging economic conditions that have weakened further in recent weeks, and as consumer confidence and spending has deteriorated, a broad range of customers have delayed their spending across all media formats until their economic outlook improves,'' Koogle said in a statement.
Moral of the story: don't depend on web ad revenue during tough times.
In semi-related news, Stomped has a quick interview with UGO's president about financial matters and UGO's affiliate network. Although the company has received an additional $23 million in funding, they've not paid affiliates since November:
When asked if and when the affiliates would be paid, J Moses told Stomped, "We plan to begin paying our affiliates in the near future. Although we confirmed a round of funding for $23 million dollars, the money is still in the process of coming in. It is remarkable that we were funded at all, in such a harsh market climate. We see this funding as an endorsement of independent content."
Let's hope that plan gets executed in the next month or so.