Tuesday, October 13, 2009

Best Indicator may become mute

Anyone who follows our thinking knows that Business Week (A McGraw Hill Co.) is one of the best indicators out there--as a contra-indicator.

They always seems to catch the top of a trend.

Now, if Bloomberg buys them, will it bring Business Week up to Bloomberg status?  Or is it a sign that one of the great financial information providers (Bloomberg) will become degraded?


GOOG is basically an advertiser, just like most publications....their topic is a way to attract subscribers which attract advertisers.   But this article about Business Week brings up an important point.   Businesses are advertising less.  This is not a "successful growth" strategy, it is a survival retrenchment strategy.   The article says that BW is retaining subscriber's but has lost 37% of advertising dollars in just one year. 

During the Mania, people didn't care about spending money, advertising became expensive and with it, advertisers became fat and got a feeling of entitlement.  Not a good scenario for a correction of the biggest Mania of the last several hundred years. 

Case in point.   One of my business advertising methods was able to be negotiated 20% down this year.  And they still have less advertisers.  They retained their "entitlement" attitude until I said bye-bye for three months, and then their attitude changed.

Short advertisers.

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