Yang: recession will make digital stronger

by Elizabeth Clifford-Marsh at IAB Engage, Revolution UK 12-Nov-08, 14:26

LONDON - Embattled Yahoo! chief executive Jerry Yang today compared the current economic downturn to the dotcom crash of 2001 but says online advertising will emerge stronger than ever.

Speaking at the IAB Engage conference in London, Yang said the situation now is similar to that in 2001, when the dotcom bubble burst, but said the industry will evolve to continue to bring in revenue.

"Brand advertisers will go through a period of adjustment where they look at advertising spend," he said. "I think that advertising will come out of this recession in a better position than it is going in. Advertisers will look to online as a way to connect with audiences as they become harder and harder to reach."

The embattled Yahoo! chief executive said that although the current environment may delay the adoption of new platforms such as internet television and mobile advertising, he is optimistic about developments for the future.

"History has shown it is times like this that new concepts and companies get born. In the darkest days companies like Yahoo! and Google were born and I'm sure that somewhere out there there's a company being built that'll present new opportunities."

Yang, who is facing shareholder pressure after the collapse of a proposed search partnership between Yahoo! and Google said that Yahoo! was continually looking to innovate.

"We at Yahoo! are looking for opportunities like this and building the right relationship in the marketplace to allow us to come out at the other end much stronger."

Comments

Andy Levis - 12/11/2008

Now the recession is with us; people will spend less time in pubs,at the theatre, and holidaying and they will spend more time indoors. With this in mind this a great time for businesses to reach their target demographic in a cost effective and accountable way...via online advertising. Digital advertising and websites allows retailers to have an online shop that's open 24 hours and considering the money they spurge on failing flagship outlets in central London, a website is a great way of maintaining they're brand and selling products to their audience at a very reasonable price. they can even see how many people visit their site. I'm preaching to the converted I know. I think its a great time to be in Digital !!!!