Online Advertising Still Growing, but Slower
Emarketer predicts that online advertising spending will reach $25.9 billion in 2008, up 23% from $21.1 billion in 2007. But what about online advertising revenue? IAB says online ad revenue was $5.9 billion in the 3rd quarter of 2008 – up 11.4%
It’s tough to compare the two figures without diving into metrics, but it doesn’t look rosy. Or, that the tough economy is hitting online too. What is clear is that revenues are going down and spending has slowed over the year.
Anecdotal evidence I’ve heard and seen shows that businesses are still increasing their online budgets and moving print spend into more trackable online spend. This is based on what I have seen working at an SEO and PPC company where I work (OrangeSoda) and what I’ve heard from others in the industry.
A silver lining fromDavid Silverman, a partner at PricewaterhouseCoopers LLP, is that, “…the Internet should be better poised to withstand the storm given its ability to combine performance-based advertising along with broad-based branding.”
Online advertising revenues have been pretty much flat all year long. TechCrunch noted that the big three Google, Yahoo, and MSN have had almost flat growth. Annual growth rates for each of the past five quarters:
I know I’m optimistic but even if growth rates slow, I don’t think we’ll see negative growth. If we do, I don’t see it being prolonged. I’d like to see if the growth rates are down across the advertising types, or if search is doing better or worse than other types of online ads.