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.