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BizReport : Advertising : February 26, 2009


IDC: 10% growth in 2009 U.S. online ad spending 'too optimistic'

IDC is revising its forecast for 10% growth in U.S. online ad spending this year and, based on the latest data collected, that revision may be downwards.

by Helen Leggatt

Hold on to your hats, we may be in for a rougher ride than expected. IDC believes its previous forecast of 10% growth in U.S. online ad spending in 2009 to be "too optimistic".

Last year the market was growing at 18%. Last quarter it grew a meager 0.4%.

The market research firm now says ad spending could fall year-over-year this quarter, the first contraction since the dot-com bubble burst in 2001, and that things may get worse before they get better.

"All in all, we believe U.S. Internet advertising revenue could contract by as much as 5% in 1Q09 [compared to 2008's first quarter]. And things may get worse in the second quarter," IDC said.

Henry Blodget's October 2008 article, "Let's Be Serious: Online Display Ads Will Fall Sharply in 2009", seems eerily prophetic in light of this latest IDC announcement.






Tags: advertising revenue, dot-com bubble, Henry Blodget, IDC, online spending








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