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BizReport : Research archives : August 10, 2009

IDC: Online ad spend down again

For the second consecutive quarter the online ad spend has decreased according to IDC. The analysis firm reports that the online ad spend shrank by 5% globally, to just under $14 billion in revenue. During Q2 2008, the online ad spend was $14.7 billion. The only bright spot? The Japanese marketplace, which saw slight gains for the quarter.

by Kristina Knight

In the US the online ad spend decreased by 7% to reach only $6.2 billion. In fact, all major ad formats saw decreased year over year. Display showed losses of 12%, classifieds saw a decrease of 17% and even publisher ad sales saw large declines.

This report should come as no surprise to marketers as metrics firms have been forecasting ad revenue slides for roughly the past year. Most firms expect this recession to end in 2010 and for the online ad spend to begin showing strong growth through 2013.

"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. However, we also believe the industry may have to wait until mid-2010 until it sees real growth again," said Karsten Weide, program director, Digital Media and Entertainment at IDC.

What can marketers expect through the remainder of 2009? A bit of the same or very slight improvements. The report forecasts that advertisers will continue to spend less in the online marketplace through Q3, but these decreases will likely have little effect on the online industry as a whole.

You can download the report here.

Tags: ad spending, advertising forecast, advertising spend, IDC, online ad spend, online advertising

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