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Internet Ad Revenues Drop 5%; A Road Bump or Road Kill?



While other advertising verticals saw recent declines in growth, it seemed as if internet advertising would continue to be invincible. Well, it looks like the kryptonite just caught up with our Superman.

The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers just released new U.S. quarterly numbers showing a 5% decline compared to the same period in 2008.

As the chart shows, this isn’t the first time that ad revenues have dropped–they did so in the same period last year–but it is the severest quarterly decline since 2001. The big question is, what’s next? Will spending continue its free fall, or will it, like last year, make a recovery over the course of the next 9 months?

  • http://www.bigpictureweb.com jlbraaten

    It’s surprising that it’s taken this long for online ad spending to decrease, given the economy. I wonder if you could adjust for the businesses that have filed for bankruptcy. Would you find that some of these companies inflated the number of dollars spent on internet advertising? Good stuff, Andy. I should be getting your book in the mail any day now. Cheers!

    jlbraaten’s last blog post..Business-to-Business Email Marketing Strategy

  • http://www.marketingpilgrim.com Andy Beal

    Thanks and enjoy the book!

  • http://www.ukifp.org mark harrison

    I think it’s too early to predict a decline, certainly long term anyway as online advertising still represents far better value for money than traditional print.

    mark harrison’s last blog post..wonga.com

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  • http://www.internet-marketing-muscle.com Bill

    Spend will naturally decline often in reverse direction to the economy as a whole. There are lags in just about everything. You can be sure that advertising will go down (how much?) but it will rise again. This is a short-lived downturn (how long is hard to tell, but signs are here that things are warming up again).

    Bill’s last blog post..Traffic Building Ideas