Online advertising ad spend down in 2008
Research firm eMarketer has lowered its forecast for online ad spending due to the “foundering” economy and problems social networks are having attracting ad dollars.
Revised Online advertising spend 2008:
- Ad spending in the US will be $25.9 billion, down from its October 2007 forecast of $27.5 billion
- Online advertising’s growth rate is expected to be 23 percent in 2008, compared to 35 percent in 2006 and 25 percent in 2007.
The report said that online advertising growth will drop to between 16 and 17 percent for the next few years and will only recover to 24 percent in 2012 amid economic recovery, with video advertising beeing the boom growth area.
Still, there are positive growth rates for online ads and “far more” than any other media because advertisers will want to spend money on more measurable marketing, according to eMarketer senior analyst David Hallerman.
“While a foundering economy will certainly affect online ad spending, accounting for the revised estimate, the Internet will support continued ad spending growth even as other media may falter,” an eMarketer statement says.
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