Yang warns of effects of recession on performance-based ads
Yahoo CEO Jerry Yang says that while performance-based advertising remains a high-growth area, it's unknown what long-term effects the current economic downturn will have on that segment of the advertising industry -- mostly because there are no historical indicators to watch.
"We are looking at an extraordinary environment," he told attendees at London's Intractive Advertising Bureau Engage conference. "The advertising industry has not seen an environment like this for decades."
Because the search sector is driven by consumer response, it's not known how their behavior would change in a recession.
"We are watching carefully [because we are] not sure whether a consumer-led recession will impact that," he said.
The Guardian reported his remarks.
