Weak online ad spend; search down
ADOTAS — This backs up earlier predictions that Internet advertising will be difficult this year.
Barclays Capital says that overall online ad spending will see a 2.3 percent increase over last year to $23.7 billion, according to Paidcontent. Analysts were calling for a reasonable 6 percent bump from ‘08, though that was a significant downgrade from Barclays’ October forecast of 16 percent growth.
Back in December, Barclays thought the segment would rise 20 percent in ‘09, but now, it looks like search will only grow 8 percent. Display is expected to be down 1.2 percent this year. Barclays also sees a 7.5 percent decline in “auctions and other,” while lead gen and e-mail marketing will grow 1 percent.
But in 2010, Barclays forecasts display will have a 2.7 percent gain, while search could be up 10 percent. Expectations will get dimmer for the “auctions and other” segment with a 1 percent decline as lead gen and e-mail are set to rise 3.4 percent.
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