Subprime Mortgage Turmoil Could Affect Web Firms

  • August 29, 2007
Web companies could face a decline in one of their biggest sources of advertising following the turmoil in the subprime mortgage market, the Financial Times has reported. Many Web companies rely on financial services advertising, with subprime in some cases accounting for a large part of it, the paper said.

About 16% of online advertising comes from financial services companies, making it the second-biggest source of advertising behind the retailing sector, the report said--citing Sandeep Aggarwal, an Internet analyst at Oppenheimer. Mortgage lenders Countrywide Financial Corp. and Low Rate Source were two of the 10 biggest online advertisers in the United States in July, according to data from Nielsen//NetRatings, the report said.

--Tanya Irwin



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