Home › DMW Daily › August 5, 2009

Online Ad Spending Down 5% in Q2; Growth Seen Mid-2010

Authored by Mark Hefflinger on August 5, 2009 - 9:45am.
Framingham, Mass. - Global online advertising spending fell 5% during the second quarter, to $13.9 billion, while the U.S. market declined by 7% to $6.2 billion, according to a report from market research firm IDC.

The U.S. saw all major online ad formats decline, with search ads being the least affected. Display (banner) ads saw a 12% decline in revenue, while classifieds dropped an even more dramatic 17%.

IDC said all major publishers' ad sales declined except Google, which posted a small gain. Worst off were Monster.com -- which saw ad revenue plummet 31% -- and AOL, which were hit by weakness in the display ad category.

Looking forward, IDC predicts the third quarter will see a similar decline in online ad spending -- but believes it will not get worse.

"We think the industry will continue to see losses in the third and fourth quarters, but the growth rates -- or the loss rates, if you will -- will eventually begin to improve," said Karsten Weide, program director of digital media and entertainment at IDC.

"However, we also believe the industry may have to wait until mid-2010 until it sees real growth again."

 

Related Links:
http://www.idc.com/getdoc.jsp?containerId=prUS21957509

Published in DMW Daily, August 5, 2009
tags: Advertising | Reports | AOL | Google | Research | IDC |



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