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Reports: Online Ad Market Outlook Grim

Written on: Nov 3, 2008
Author: Kathleen |
: Share; Reports: Online Ad Market Outlook Grim

ADOTAS – The online ad market’s recent past, present and future is looking a bit soft, according to a few new reports out today.

Media advertising spend is down 1.3% this year from January to August (compared to the same period last year), according to reports. Take away the influx of political and Olympics ads, and it’s even worse – revenues plummeted 2.4%.

Meanwhile, J.P. Morgan has slashed its online ad forecast again. J.P. Morgan predicts an annual rate of growth of 25% in 2007 and 13% in 2009, down from 28% and 19%.

Display is the hardest-hit sector: this year, the firm predicts domestic display will garner $7.95 billion, representing 11% growth, down from $8.15 billion or the 14% growth originally predicted. Next year, display is set to rake in $8.45 billion, representing 6% growth, down from $9.43 billion, or 16% growth.

Search advertising will also be hit: J.P. Morgan reduced growth estimates to 23.4% this year from 27.4% and 17.3% next year, from 25.5%.

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Tags: display-advertising, interactive-advertising-study, internet-advertising-news, internet-marketing-advertising, j.p.-morgan and search-engine-advertising

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