Should Google, Yahoo, & Microsoft Worry About Countrywide's Takeover?

Countrywide Financial (CFC) is being acquired by Bank of America (BAC) and when the deal closes the second largest Web advertiser will disappear. It’s highly unlikely that Bank of America will spend so lavishly on online advertising.

Most folks know that mortgage giant was on the ropes. Bankruptcy rumors and persistent worries about the company’s health never went away as Countrywide’s stock crumbled to single digits. But a funny thing happened as Countrywide’s business unraveled–it advertised more. A lot more. Countrywide ads abound on Google (GOOG), Yahoo (YHOO) (especially Yahoo Finance) and Microsoft (MSFT)–the three players battling for online dominance.

When I first highlighted concerns about Countrywide’s online advertising spend in August the company spent and estimated $34.77 million on online advertising, according to Nielsen/Netratings. For July, Countrywide was the fourth biggest online advertiser. Surprisingly, Countrywide ramped up its ad spending. As of November, Countrywide was the second largest online advertiser spending a whopping $57.6 million on online advertising, according to Nielsen/Netratings.

Here’s the comparison:

July’s rankings:

And November’s rankings:

Rest assured that gravy train won’t continue under Bank of America, which is averaging down big time on a previous Countrywide investment (company statement). The bank is good at acquiring companies. It cuts costs, trims fat and integrates operations quickly. You want advertising? Go to a Bank of America branch where folks will try to upsell you a mortgage. Better yet, Bank of America’s branches are free.

Sorry Google.

Sorry Yahoo.

Sorry Microsoft.

Perhaps keyword advertising’s ROI will be so good that Bank of America will keep spending on online advertising, but I doubt it. Countrywide was an idiot about advertising spending. How do I know? When my daughter is watching Nickelodeon she will inevitably see a Countrywide ad. Surely, the ROI on those ads can’t be too great–unless every five year old runs to their parents and urges them to refinance.

If advertising stupidity like that example is prevalent at Countrywide the online spend probably wasn’t tracked well either. Countrywide tried to grow its way out of a pickle (when the going gets rough, the tough advertise). But Bank of America will just clean up the mess and fight another day.

Simply put, Countrywide’s penchant for advertising will disappear. To Bank of America CEO Ken Lewis Countrywide’s willy nilly ad spending will just be more fat to cut.

Comments

[seriously ?]

agreed, but I think the more important issue is how an overall recession will affect online advertising.

Also I believe google is really the company in question here. Yahoo is dying and may soon be bought by Microsoft. I would also dare to say that Microsoft is dying because they are fighting an N-front war ( remember they want to be the world's first tech company to be an "N-trick pony" )

Online advertising is a serious issue for Google but shouldn't be for Microsoft as I believe they have already lost that war.

[H2O]

~I Need A Demon to Fight~

I took a walk across my fields of food galore
- Most would feed the poor - and picking most
would pay a good working-wage - But I want a better
price - and cheap-labor would be best for me - let
most of these fields of plenty - go for the price
- I have set - I need my demon to fight ...

I went down walking across the construction site's
- Cheap Labor Building - House's galore - from the
poor to the rich - could live side by side in peace
- but I want my price's - so high - I drove up the
price through a fee based economy - Now there will
be no poor by me - I need my demon to fight ...

I went down across America - separation among all
I Put the Native's here - and told other's they must
live there - Little left of the world of America - A
dream for the world - resources galore - was taken
from the land - I cut down the tree's - killed most of
the animals - I stripped the beauty away - I needed
my money above all - I need my demon to fight ...

American cities falling apart again - Cheap Labor for
all - Fear and Hate over Hope - Make's money for me - Hope
on a rope - Is just for Me - I need my demon to fight !!!

~WARRIOR~

[H2O]

~ What If - Martin Luther King Jr - Did not dare to dream - the dream ~

What Would Martin Luther King Jr Do ???

What would Have Martin Luther King Jr - Done with The
Money if He became the first Black Billionare ???

Would he had sought to steal the poor's social-security
for the rich-greedy wall-street ???

Would he had supported welfare-reform that throw young women
and kids out into - the cold-dark of the night ???? and all the
while telling them - it was good to look for work - while giving
away the job's to cheap-slave-labor ????

Ask your-self - If Martin Luther King Jr - Did not speak out against
those - things he know was wrong - And did not dare to dream the dream !!!

There is one simple fact - There is speaking out against the MAN - and there
is speaking up for the MAN ----------

Where would we Be - If the dream was not made into Law - By The Demands
- of that Dream ???


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Martin Luther King Jr. """&quo...