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More on What the Credit Crisis May Mean for Interactive Media

Posted by Mark Naples on September 30th, 2008 at 12:00 am

We all know that spending will be down in the coming months, not just in our markets but in most all other markets.  Even Microsoft's Steve Balmer went on the record today to dampen expectations about MSFT's software revenue moving forward.  But, I keep hearing people in our industry wax bullish, saying that interactive is immune from the credit crisis since our medium is so much more accountable than others.
This credit crisis is different than other dips in our economy during the past generation, however.  While interactive may not see the kinds of declining budgets that other media may, the overall projections already are beginning to show a decline.  The big fallout may reside in the M&A field, however.  Companies that have been looking for their $100M payday will have to reassess their expectations downward.  Perhaps considerably downward.  That sort of thing is going to become far more rare in the next 18 months than it has been during the past 36.  As credit markets dry up, so will speculation.  After all, each requires capital, and only one is regarded as more disposable than the other by those holding the purse strings. 
Our industry - thanks largely to Search -... Read more