Search Spend Way Up Though Economy Flat

In a previous post, I discussed how SEM would actually do well in a recession. Well see this NY Time article. Key quotes:

"Google said it has seen no effect from a slowing economy on its advertising business, as it reported a 17 percent jump in profit and a 51 percent growth in revenue in the fourth quarter...

Remember, the US economy grew an anemic 0.6% in the 4th quarter.

“We have not seen any impact as of now,” said Eric E. Schmidt, Google’s chief executive, in an interview Thursday afternoon after the financial report was announced.

"Mr. Schmidt said he had yet to see weakness in any advertising category.

Bottom line: business has to advertise. Search is more results-oriented and therefore harder to cut in lean times.