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Summary:

In a shift, online ad spending dropped 5 percent in the first quarter to $5.5 billion, according to the Interactive Advertising Bureau. That…

David IAB Chart

imageIn a shift, online ad spending dropped 5 percent in the first quarter to $5.5 billion, according to the Interactive Advertising Bureau. That was a turnabout from the last couple quarters, which the IAB previously said were up 2.6 percent and 11 percent respectively. The latest figures highlight the general weakness of the internet space as the economy lurches toward recovery. For example, last week the Newspaper Association of America said that newspaper website revenues declined an unprecedented 13.4 percent.

The IAB’s figures are basically in line with BernsteinResearch’s finding that online ad dollars fell 4 percent in Q1, as the total ad market cratered 15.1 percent. For the full set of numbers from the IAB, the chart is after the jump.

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  1. Certain areas of online advertising are still growing. At Hydra we have seen great growth in the area of CPA (Cost Per Action). Without a doubt the economy has hit budgets and made marketers want proof that they will get their money's worth. CPA does that because marketers only pay when an ad converts. Marketers will spend as long as they get the ROI they require.

  2. There's a huge drop of revenue there between the 2008 4th quarter and the 2009 1st quarter. This only proves that up to now, we are still experiencing the effect of the global financial crisis. Companies need to trim down their online ads investment.

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