Mandatory continuing legal education is here. Starting Jan. 1, every lawyer licensed to practice in New Jersey, including judges, law school professors and limited-license in-house counsel, must take a minimum of 24 hours of continuing legal education courses every two years, the state Supreme Court declares in a newly adopted rule.
Rule 1:42, which was proposed and put out for public comment in October, is the culmination of a two-year long study by the court's Ad Hoc Committee on Continuing Legal Education. [See notice to the Bar.]
Under the rule, lawyers may satisfy the requirements with all "alternative verifiable learning formats," including videotape, satellite simulcast and the Internet. Reciprocal credit will be given for courses taken from other jurisdictions.
Twelve credit hours can be carried over from one cycle to the next, except for courses in the area of ethics or professionalism, which must make up four of the requisite 24 credits in every cycle. Lawyers who serve on a district ethics committee will get credit for two of those four hours.
The court also abolished outright the Skills and Methods Course, until now required of all newly admitted attorneys. But new admittees will have to "bridge the gap" during their first two-year cycle by choosing subjects from a special list.
Compliance with mandatory continuing legal education, or MCLE, will be on the honor system, with lawyers required to certify every two years that they have fulfilled their obligation. They must also "maintain all necessary records and documentation to demonstrate such compliance in accordance with regulations adopted under these Rules."
Self-reporting, which was favored by the State Bar Association, was not part of the MCLE system as originally proposed. The ad hoc committee, chaired by former N.J. Supreme Court Justice Peter Verniero, wanted a "transcript method," a central uniform tracking system with providers sending in attendance records. Another rejected idea, suggested by the Institute for Continuing Legal Education, the state's largest single provider of such services, would have put ICLE in charge of tracking compliance.
The self-monitoring will cost lawyers $4 per year, which will be added to the annual attorney registration fee. The court said the money was needed because under the transcript method, it could have collected up to $2 per credit for out-of-state courses or those using alternative learning formats, money foregone under the self-reporting approach. So it imposed the $4 fee to pay for staff to administer MCLE and for such costs as a computer database and tracking system.
Extensions of time to comply will be available on a case-by-case basis "for good cause shown," including illness.
Though the two-year cycle will not start until Jan. 1, 2010, lawyers are entitled to credit for certain courses taken as far back as Jan. 1, 2009. The retroactive credit, which was announced by the court on Aug. 13, is available for courses taken to become a certified attorney, skills and methods courses, out-of state CLE courses and possibly others.
The court also created an 11-member Board on Continuing Legal Education, chaired by Justice Roberto Rivera-Soto, that will administer the program and promulgate the governing regulations. Board members, who serve staggered, three-year terms, are immunized from suit over their board activities.
The board's duties include deciding which courses and activities qualify for credit, designating education providers and setting the fees that will be charged to attorneys and providers to fund the administration of the program. The board has instructions to revisit the $4 fee after the first two years and decide if an annual assessment is still needed.
To make sure MCLE is up and running as of Jan. 1, the board is authorized to act before it adopts controlling regulations. For instance, it can determine the MCLE subject areas and what credit to give for completed skills and methods courses. But until it puts rules in place, it can only approve courses that require attorney attendance, ruling out online instruction for the interim.
Verniero, now with Sills Cummis & Gross in Newark, says "I feel very good about the end result" and he praised the court, saying it "took the time necessary to create an ad hoc committee to review various proposals and to be very comprehensive in its approach."
State Bar president Allen Etish released a statement saying the association is proud the final rule incorporated many of the bar association's recommendations, "most notably that attorneys are allowed to track their own coursework," and it "will be looking for ways to provide our members additional opportunities to accumulate meaningful and affordable CLE credits through the programming of our sections, committees, and at our Mid-Year and Annual Meetings."
With the adoption of R. 1:42, New Jersey joins 42 other states, according to the American Bar Association, that require some form of continuing legal education.
By Mary Pat Gallagher
A blog for new jersey internet marketers, business owners with new jersey websites, pictures, and videos.
Thursday, December 31, 2009
Monday, December 28, 2009
New Jersey lawmaker targets tax exclusions
Every year, New Jersey gives away millions, perhaps billions, of dollars through tax credits, deductions, and exemptions collectively known as tax expenditures.
The tax breaks include everything from exempting employee-retirement-fund contributions from income taxes to special tax credits for certain corporations.
While many - and perhaps even all - might advance worthy goals, no one knows how much New Jersey is spending through these tax expenditures.
That is because the state is one of nine that offer no public accounting of such spending.
Sen. Barbara Buono (D., Middlesex), chairwoman of the Senate Budget and Appropriations Committee, wants that to change.
Buono introduced a bill earlier this month to require that the governor's annual budget message include a state tax-expenditure report, including a list of the state's tax credits, deductions, and exemptions, and how much each costs the state. She said the measure was especially crucial now, in light of the state's dire fiscal situation.
"It's another form of spending, and it's revenue forgone," Buono said. "It doesn't receive the level of scrutiny that direct expenditures do. The danger is most of these are written into the tax code where they are continued indefinitely, unlike annual appropriations, which usually last one year."
Buono said she planned to post the bill, which she said was based on the best practices identified in a report by the Center on Budget and Policy Priorities on tax-expenditure reports, for discussion when the budget committee meets on Jan. 4.
Most other states and the federal government produce tax-expenditure reports, though they vary widely in quality.
The reports help lawmakers and the public keep track of forgone revenues that otherwise might get lost in the shuffle of the tax code.
The tax breaks can amount to big money: Washington state has reported a loss of nearly $99 billion a year in state and local tax expenditures and Oregon nearly $29 billion, according to Mary Forsberg, interim president of New Jersey Policy Perspective, which has argued for years that New Jersey should require a tax-expenditure report. Pennsylvania's most recent tax-expenditure report runs more than 100 pages.
As states throughout the country try to replace dramatically fallen revenue, lawmakers in at least one, Oklahoma, have targeted tax breaks as a potential source of new funding. Among the legislators already in support of Buono's bill is Sen. Shirley Turner (D., Mercer).
Turner sponsored a bill, signed by Gov. Corzine in November 2007, to require the state treasurer to produce an annual report with information on development subsidies, a small subset of the information Buono's bill seeks.
But the treasurer has never produced the report required by the law, Turner and Buono both say. The office of Treasurer R. David Rousseau did not return calls for comment Thursday.
Turner said she wrote to the treasurer in August and again Wednesday asking about the report but had received no response.
"It is very disappointing as well as frustrating when there are laws on the books that are being ignored, and the treasurer doesn't seem to think that it's important to comply with something as important as millions and millions of taxpayer dollars that are being given to corporations with no accountability," Turner said. "I think taxpayers have a right to know exactly how their dollars are being spent."
Turner said she was inspired to create the law after hearing about a company that received state subsidies to create jobs in New Jersey that moved to New York City before fulfilling its obligations.
"They were taking the money, and they were running," Turner said.
Forsberg, of New Jersey Policy Perspective, said tax-expenditure reports are critical to understanding how the state allocates its resources. Every dollar of forgone revenue can mean higher taxes for someone else, or fewer services.
"It's important for people to realize that the state is losing money as a result of decisions that are never revisited," Forsberg said.
One example of a tax expenditure that is costing state taxpayers a significant amount of money is a long-standing agreement between New Jersey and New York regarding residents of one state who work in the other, Forsberg said. Under the agreement, residents pay income taxes to the state where they work. Forsberg said that in 2004, when the numbers were last available, the agreement cost New Jersey about $1.5 billion a year, a number she said was likely higher now.
Most of the people who live in New Jersey but work in New York pay more to New York than they would to New Jersey, which means that if New Jersey could end or rework the agreement, the state could receive more in income taxes while its individual residents would pay less, Forsberg said.
"Considering that income taxes in New Jersey are dedicated to property-tax relief, that's a lot of money that would be a very helpful thing for New Jersey to have," Forsberg said.
According to the Treasury Department, New Jersey has never done a formal tax-expenditure report.
In 2006, the state Division of Taxation compiled a list of many tax expenditures, finding 121 sales-tax exclusions, 44 gross-personal-income-tax exclusions, and 28 corporate-business-tax exclusions. The list did not attempt to estimate what each exclusion was costing taxpayers.
By Adrienne Lu
The tax breaks include everything from exempting employee-retirement-fund contributions from income taxes to special tax credits for certain corporations.
While many - and perhaps even all - might advance worthy goals, no one knows how much New Jersey is spending through these tax expenditures.
That is because the state is one of nine that offer no public accounting of such spending.
Sen. Barbara Buono (D., Middlesex), chairwoman of the Senate Budget and Appropriations Committee, wants that to change.
Buono introduced a bill earlier this month to require that the governor's annual budget message include a state tax-expenditure report, including a list of the state's tax credits, deductions, and exemptions, and how much each costs the state. She said the measure was especially crucial now, in light of the state's dire fiscal situation.
"It's another form of spending, and it's revenue forgone," Buono said. "It doesn't receive the level of scrutiny that direct expenditures do. The danger is most of these are written into the tax code where they are continued indefinitely, unlike annual appropriations, which usually last one year."
Buono said she planned to post the bill, which she said was based on the best practices identified in a report by the Center on Budget and Policy Priorities on tax-expenditure reports, for discussion when the budget committee meets on Jan. 4.
Most other states and the federal government produce tax-expenditure reports, though they vary widely in quality.
The reports help lawmakers and the public keep track of forgone revenues that otherwise might get lost in the shuffle of the tax code.
The tax breaks can amount to big money: Washington state has reported a loss of nearly $99 billion a year in state and local tax expenditures and Oregon nearly $29 billion, according to Mary Forsberg, interim president of New Jersey Policy Perspective, which has argued for years that New Jersey should require a tax-expenditure report. Pennsylvania's most recent tax-expenditure report runs more than 100 pages.
As states throughout the country try to replace dramatically fallen revenue, lawmakers in at least one, Oklahoma, have targeted tax breaks as a potential source of new funding. Among the legislators already in support of Buono's bill is Sen. Shirley Turner (D., Mercer).
Turner sponsored a bill, signed by Gov. Corzine in November 2007, to require the state treasurer to produce an annual report with information on development subsidies, a small subset of the information Buono's bill seeks.
But the treasurer has never produced the report required by the law, Turner and Buono both say. The office of Treasurer R. David Rousseau did not return calls for comment Thursday.
Turner said she wrote to the treasurer in August and again Wednesday asking about the report but had received no response.
"It is very disappointing as well as frustrating when there are laws on the books that are being ignored, and the treasurer doesn't seem to think that it's important to comply with something as important as millions and millions of taxpayer dollars that are being given to corporations with no accountability," Turner said. "I think taxpayers have a right to know exactly how their dollars are being spent."
Turner said she was inspired to create the law after hearing about a company that received state subsidies to create jobs in New Jersey that moved to New York City before fulfilling its obligations.
"They were taking the money, and they were running," Turner said.
Forsberg, of New Jersey Policy Perspective, said tax-expenditure reports are critical to understanding how the state allocates its resources. Every dollar of forgone revenue can mean higher taxes for someone else, or fewer services.
"It's important for people to realize that the state is losing money as a result of decisions that are never revisited," Forsberg said.
One example of a tax expenditure that is costing state taxpayers a significant amount of money is a long-standing agreement between New Jersey and New York regarding residents of one state who work in the other, Forsberg said. Under the agreement, residents pay income taxes to the state where they work. Forsberg said that in 2004, when the numbers were last available, the agreement cost New Jersey about $1.5 billion a year, a number she said was likely higher now.
Most of the people who live in New Jersey but work in New York pay more to New York than they would to New Jersey, which means that if New Jersey could end or rework the agreement, the state could receive more in income taxes while its individual residents would pay less, Forsberg said.
"Considering that income taxes in New Jersey are dedicated to property-tax relief, that's a lot of money that would be a very helpful thing for New Jersey to have," Forsberg said.
According to the Treasury Department, New Jersey has never done a formal tax-expenditure report.
In 2006, the state Division of Taxation compiled a list of many tax expenditures, finding 121 sales-tax exclusions, 44 gross-personal-income-tax exclusions, and 28 corporate-business-tax exclusions. The list did not attempt to estimate what each exclusion was costing taxpayers.
By Adrienne Lu
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Tuesday, December 15, 2009
Johnnie Walker Strides in New Jersey
Black Label Celebrates 100th Anniversary and Appoints New Jersey Native to Lead Local Initiative
Johnnie Walker Black Label is launching a new initiative that brings events, promotions and new business opportunities to New Jersey. In May, the deluxe Scotch Whisky kicked off its 100th anniversary celebration with the theme, "100 Years of Progress." In continuation of the centennial birthday, the brand turns the focus local and highlights the Garden State's Latino community -- with one of New Jersey's own at the program's helm.
Latinos exert a powerful force in New Jersey, making an ideal environment for the endeavor. Currently making up more than 16 percent of the population, they represent the fastest growing segment in the state. In addition, New Jersey houses the 5th largest concentration of Latino businesses in the country, which numbered over 52,000 in 2008, predicted to double by 2010. As business leaders, consumers, homeowners and active community members, Latinos make essential social, cultural and economic contributions that help the state thrive.
"Latinos represent achievement and progress in New Jersey, two characteristics that Johnnie Walker Black Label also exemplifies," says Gerry Rojas, New Jersey Hispanic Brand Ambassador for Johnnie Walker and proud New Jerseyite. The initiative celebrates the accomplishments of New Jersey Latinos and creates new opportunities for business owners in the spirits industry to excel. It also invites everyday residents to join the celebration. "Whether they are coming together for family festivities, networking, cultural events or just a well-deserved evening out, Johnnie Walker is uniting people from every part of the diverse Latino community by providing access to some of the best places and events that New Jersey has to offer," Rojas says.
New Jersey's Striding Man
Rojas' vast experience in the Latino market has primed him to be the ideal Hispanic Brand Ambassador for Johnnie Walker in New Jersey. Having grown up in Union City, West New York and North Bergen, he brings first-hand familiarity with the business and entertainment landscape, and he also touts a credentialed record.
An industry veteran with nearly a decade of experience in sales, brand development and marketing, Rojas is a pioneer in Latino marketing who entered the field when multicultural marketing was still in its inception, shortly after the 2000 census results raised awareness of the Hispanic consumers' potential. He lead some of the first broad-scale corporate marketing initiatives incorporating the emerging Latino consumer and spearheaded the development of a new multicultural division of an established event agency, which brought branded entertainment expertise to the Latino demographic.
For New Jersey, this means exciting strides to come from Rojas and Johnnie Walker Black Label. "People who live, work and play in New Jersey can look forward to new options provided by Johnnie Walker," Rojas says. "We're excited to give businesses more of the tools they need to get ahead and to support fun events that give people more occasions to get together around art, music, food and heritage, courtesy of Johnnie Walker." Watch for a calendar of Johnnie Walker events coming soon.
Learn more about Johnnie Walker at www.johnniewalker.com.
For more information about Johnnie Walker events across New Jersey kicking off in January 2010, email Onda.Comm@gmail.com.
ABOUT JOHNNIE WALKER®
Johnnie Walker® is the world's most powerful whisky brand. Its portfolio features five award-winning whiskies -- Red Label®, Black Label®, Green Label®, Gold Label®, and Blue Label® -- imported and distributed in the United States by Diageo North America. More than 4 bottles of Johnnie Walker are consumed every second, and more than 120 million bottles are sold every year in more than 200 countries. The product line covers a broad range of occasions for the whisky drinker from every day to special moments. The five premium brands represent a range of prices and tastes that share a remarkable 180-year history and a commitment to quality. Additional information about Johnnie Walker may be found at www.johnniewalker.com.
ABOUT DIAGEO
Diageo is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, wines, and beer categories. These brands include Johnnie Walker, Guinness, Smirnoff, J&B, Baileys, Cuervo, Tanqueray, Captain Morgan, and Crown Royal, as well as Beaulieu Vineyard and Sterling Vineyards wines. Diageo is a global company, trading in more than 200 markets around the world. The company is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE). For more information about Diageo, its people, brands, and performance, visit http://www.diageo.com. Celebrating life, every day, everywhere, responsibly.
SOURCE Johnnie Walker
Johnnie Walker Black Label is launching a new initiative that brings events, promotions and new business opportunities to New Jersey. In May, the deluxe Scotch Whisky kicked off its 100th anniversary celebration with the theme, "100 Years of Progress." In continuation of the centennial birthday, the brand turns the focus local and highlights the Garden State's Latino community -- with one of New Jersey's own at the program's helm.
Latinos exert a powerful force in New Jersey, making an ideal environment for the endeavor. Currently making up more than 16 percent of the population, they represent the fastest growing segment in the state. In addition, New Jersey houses the 5th largest concentration of Latino businesses in the country, which numbered over 52,000 in 2008, predicted to double by 2010. As business leaders, consumers, homeowners and active community members, Latinos make essential social, cultural and economic contributions that help the state thrive.
"Latinos represent achievement and progress in New Jersey, two characteristics that Johnnie Walker Black Label also exemplifies," says Gerry Rojas, New Jersey Hispanic Brand Ambassador for Johnnie Walker and proud New Jerseyite. The initiative celebrates the accomplishments of New Jersey Latinos and creates new opportunities for business owners in the spirits industry to excel. It also invites everyday residents to join the celebration. "Whether they are coming together for family festivities, networking, cultural events or just a well-deserved evening out, Johnnie Walker is uniting people from every part of the diverse Latino community by providing access to some of the best places and events that New Jersey has to offer," Rojas says.
New Jersey's Striding Man
Rojas' vast experience in the Latino market has primed him to be the ideal Hispanic Brand Ambassador for Johnnie Walker in New Jersey. Having grown up in Union City, West New York and North Bergen, he brings first-hand familiarity with the business and entertainment landscape, and he also touts a credentialed record.
An industry veteran with nearly a decade of experience in sales, brand development and marketing, Rojas is a pioneer in Latino marketing who entered the field when multicultural marketing was still in its inception, shortly after the 2000 census results raised awareness of the Hispanic consumers' potential. He lead some of the first broad-scale corporate marketing initiatives incorporating the emerging Latino consumer and spearheaded the development of a new multicultural division of an established event agency, which brought branded entertainment expertise to the Latino demographic.
For New Jersey, this means exciting strides to come from Rojas and Johnnie Walker Black Label. "People who live, work and play in New Jersey can look forward to new options provided by Johnnie Walker," Rojas says. "We're excited to give businesses more of the tools they need to get ahead and to support fun events that give people more occasions to get together around art, music, food and heritage, courtesy of Johnnie Walker." Watch for a calendar of Johnnie Walker events coming soon.
Learn more about Johnnie Walker at www.johnniewalker.com.
For more information about Johnnie Walker events across New Jersey kicking off in January 2010, email Onda.Comm@gmail.com.
ABOUT JOHNNIE WALKER®
Johnnie Walker® is the world's most powerful whisky brand. Its portfolio features five award-winning whiskies -- Red Label®, Black Label®, Green Label®, Gold Label®, and Blue Label® -- imported and distributed in the United States by Diageo North America. More than 4 bottles of Johnnie Walker are consumed every second, and more than 120 million bottles are sold every year in more than 200 countries. The product line covers a broad range of occasions for the whisky drinker from every day to special moments. The five premium brands represent a range of prices and tastes that share a remarkable 180-year history and a commitment to quality. Additional information about Johnnie Walker may be found at www.johnniewalker.com.
ABOUT DIAGEO
Diageo is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, wines, and beer categories. These brands include Johnnie Walker, Guinness, Smirnoff, J&B, Baileys, Cuervo, Tanqueray, Captain Morgan, and Crown Royal, as well as Beaulieu Vineyard and Sterling Vineyards wines. Diageo is a global company, trading in more than 200 markets around the world. The company is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE). For more information about Diageo, its people, brands, and performance, visit http://www.diageo.com. Celebrating life, every day, everywhere, responsibly.
SOURCE Johnnie Walker
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Japanese Business Group Travels Long Distance to See New Jersey American Water Plant
A 14-member management team from Japan's Nippon Soda company, requested that their visit to the United States include a visit to New Jersey American Water's Canal Road water treatment plant in Somerset, NJ. The Japanese were just the latest in a line of international visitors that have come to New Jersey American Water in 2009 to see what many consider to be a flagship water treatment facility.
Accompanied by a translator, the Japanese business men and women traveled from New York City to see how the northern New Jersey plant uses a unique mix of technologies to treat up to 80 million gallons of drinking water per day.
Production Manager Oleg Kostin, who managed the initial construction of the facility briefed the group on the plant's history, and its integration into New Jersey American Water's system. "I feel like I birthed this plant," said Kostin. "It's my baby." It was a comment that, translated, drew quite a few laughs from the Japanese guests.
"The group members were delighted with the warm reception they received in New Jersey," said Howard Sigman of the Consulate General of Japan. "In fact, they said the visit to the Somerset facility was the highlight of their trip to the US."
New Jersey American Water, a wholly owned subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.5 million people. Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 15 million people in 32 states and Ontario, Canada. More information can be found by visiting www.amwater.com.
SOURCE New Jersey American Water
Accompanied by a translator, the Japanese business men and women traveled from New York City to see how the northern New Jersey plant uses a unique mix of technologies to treat up to 80 million gallons of drinking water per day.
Production Manager Oleg Kostin, who managed the initial construction of the facility briefed the group on the plant's history, and its integration into New Jersey American Water's system. "I feel like I birthed this plant," said Kostin. "It's my baby." It was a comment that, translated, drew quite a few laughs from the Japanese guests.
"The group members were delighted with the warm reception they received in New Jersey," said Howard Sigman of the Consulate General of Japan. "In fact, they said the visit to the Somerset facility was the highlight of their trip to the US."
New Jersey American Water, a wholly owned subsidiary of American Water (NYSE: AWK), is the largest investor-owned water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.5 million people. Founded in 1886, American Water is the largest investor-owned U.S. water and wastewater utility company. With headquarters in Voorhees, N.J., the company employs more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 15 million people in 32 states and Ontario, Canada. More information can be found by visiting www.amwater.com.
SOURCE New Jersey American Water
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Display Ad Recovery Bodes Well For Yahoo: Analysts Cite Auto, Finance, 'Price Integrity'
Reiterating an "overweight" buying recommendation for shares of Yahoo stock, the influential securities research team at JP Morgan this morning issued a report to investors suggesting that an imminent recovery in the online display advertising marketplace could be the "catalyst" for a rebound at the online portal giant.
"In 2009, one of the hardest hit Internet sectors has been display advertising. At Yahoo, owned-and-operated display advertising revenues were down 12% in the first three quarters of 2009 and accounted for roughly 25% of gross revenue in third quarter (and a substantially higher percentage of profitability). Thus, we think a recovery in display advertising dollars could be a catalyst for Yahoo's stock," the analysts wrote, noting that positive signs are mounting, including an improvement in key vertical ad categories, such as automotive and finance, which account for roughly 25% of Yahoo's online advertising revenue.
"Revenue from those two verticals was down more than 15% during the first nine months," the researchers noted, adding, "However, based on our industry checks, we think auto and finance advertisement trends are improving in the fourth quarter. Additionally we think the comps are getting easier. Therefore we think our owned and operated display advertising estimate for 1.5% growth in fiscal 2010 could be too conservative."
Another positive sign for Yahoo is the fact that big premium publishers are shifting their focus to "price integrity," which JPMorgan said should help bolster Yahoo's display advertising business, as well. Specifically, the analysts cited Time Warner's spin-off of AOL, and reports that CBS plans to discontinue selling its premium online ad inventory via third-party ad networks.
"We believe these moves by larger publishers will improve price integrity for the display advertising market as a whole," the analysts wrote. "Considering Yahoo is the largest display ad publisher, we see it as a likely beneficiary of pricing improvements."
"In 2009, one of the hardest hit Internet sectors has been display advertising. At Yahoo, owned-and-operated display advertising revenues were down 12% in the first three quarters of 2009 and accounted for roughly 25% of gross revenue in third quarter (and a substantially higher percentage of profitability). Thus, we think a recovery in display advertising dollars could be a catalyst for Yahoo's stock," the analysts wrote, noting that positive signs are mounting, including an improvement in key vertical ad categories, such as automotive and finance, which account for roughly 25% of Yahoo's online advertising revenue.
"Revenue from those two verticals was down more than 15% during the first nine months," the researchers noted, adding, "However, based on our industry checks, we think auto and finance advertisement trends are improving in the fourth quarter. Additionally we think the comps are getting easier. Therefore we think our owned and operated display advertising estimate for 1.5% growth in fiscal 2010 could be too conservative."
Another positive sign for Yahoo is the fact that big premium publishers are shifting their focus to "price integrity," which JPMorgan said should help bolster Yahoo's display advertising business, as well. Specifically, the analysts cited Time Warner's spin-off of AOL, and reports that CBS plans to discontinue selling its premium online ad inventory via third-party ad networks.
"We believe these moves by larger publishers will improve price integrity for the display advertising market as a whole," the analysts wrote. "Considering Yahoo is the largest display ad publisher, we see it as a likely beneficiary of pricing improvements."
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