Citing Google (Nasdaq:GOOG) executives at the World Economic Forum, the Financial Times said Google will not partake in the advertising cycle connected to the slowing U.S. economy.
Nikesh Arora, who leads Google's search initiatives in Europe, had this to say: "The trend right now is stronger than the trend of the cycle. Consumer behaviour is moving to the net and marketers want to follow the consumer."
I think Google is right in reference to themselves in connection to their revenue growth with Internet advertising, but I think those relying on online ad revenue should overall enjoy the same strength during this time as Google.
What Arora is saying is the migration trend of ad spend to the Internet will overcome the trend of cutting back on ad budgets. The cuts won't be in the digital realm, but on traditional platforms.
Unless something dramatic and unforeseen happens, this should be something we can count on for the foreseeable future, regardless of macroeconomic forces.
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