QuinStreet CEO Identifies Recession Winners and Losers at LeadsCon 2009

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Doug Valenti, CEO of QuinStreet, Inc., presented his assessment of the current state of the online lead generation industry at LeadsCon 2009 in Las Vegas. Despite recessionary pressures, online lead generation has enjoyed a healthy measure of growth during the past year. Valenti outlined trends in Internet marketing and identified market segments likely to continue to perform well, as well as segments that are likely to underperform in the foreseeable future.

No business is completely immune from the current economic climate, and there are many segments of online marketing that are negatively affected by current economic weakness

QuinStreet, Inc. CEO, Doug Valenti, was a featured speaker on the State of the Industry panel at LeadsCon 2009 in Las Vegas on May 4. Valenti offered a valuable perspective into the online lead generation industry. At the helm of the industry's leading performance marketing and media firm for the past decade, Valenti has a deep understanding of trends in online marketing.

"No business is completely immune from the current economic climate, and there are many segments of online marketing that are negatively affected by current economic weakness," Valenti said. "But, performance marketing on the Internet is one of very few industries continuing to grow overall. Looking to the future, we see a cause for continued optimism and a long term growth chart that is very much up and to the right."

Valenti projects potential winners in the months ahead, predicting companies with heavy reliance on media for customer acquisition, such as NetFlix, are likely to capitalize on declining display ad rates. Other businesses likely to succeed in online marketing are companies whose value proposition is based upon saving consumers money.

"We are seeing a lot of shopping online for cost savings on essential products and services," Valenti said. "It's not a surprise that coupon sites have achieved revenue increases approaching 40 percent this year."

Other categories of business likely to grow in the current market are non-discretionary products and/or services. Medical and health related products and services are holding up very well in online marketing campaigns, Valenti noted.

On the other hand, Valenti anticipates continued market softness for businesses promoting discretionary purchases, especially large items such as automobiles and homes, as consumers continue to delay making big ticket purchases.

"Purchases that require consumers to access bank credit or home equity are facing particular challenges at this time due to tightened credit and reduced home equity values," Valenti said. "Many remodeling and home improvement projects are scaled back due to financing constraints."

Bank related offerings, such as credit cards and mortgages, are unlikely to see significant growth in the near-term due to problems with their balance sheets and with securitization markets. Banks with strong balance sheets may succeed in attracting new customers, particularly for refinancing, Valenti noted.

The LeadsCon 2009 State of the Industry panel was moderated by David Carlick, Director, ReachLocal, Inc., and featured Valenti along with Ross Sandler, Senior Analyst Global Internet & Media Research, RBC Capital Markets; and Michael Zeisser, Senior Vice President, Liberty Media Corporation.

About QuinStreet, Inc.
QuinStreet, Inc. has been the leader in performance marketing and media online since 1999, consistently delivering the right leads at the right volume to thousands of industry-leading clients.

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Tracy Viselli
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