Online advertising taking a hit in 09, growth rate slowing to 8.9 percent |
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Online advertising taking a hit in 09, growth rate slowing to 8.9 percent
Just last week, we reported on numbers from the Interactive Advertising Bureau and PricewaterhouseCoopers that indicated a slow down in online advertising.
Now, here's more evidence from eMarketer which predicts that the online ad category will only grow by 8.9 percent next year. That compares to an 11.3 percent growth rate in 2008. And the report notes that it will take another two years -- 2011 -- until ad growth rates surpass the levels of 2008.
There's a good reason so many Seattle area startup companies have been putting on the brakes in recent months, preparing for an 18-to-24-month downturn.
Display ads and lead generation are the only two categories expected to outpace the growth rates of 2008 next year, while sponsorships and classifieds are expected to take a big hit.
Search and video advertising are expected to show double digit growth rates next year, but those too are slowing. Video advertising is expected to grow by 44.9 percent next year, which compares to an impressive 81 percent growth rate in 2008. And search advertising is expected to grow by 12.9 percent versus 21.4 percent, according to eMarketer.
“Especially in economic turmoil, search is more trackable than any other ad format,” said David Hallerman, senior analyst at eMarketer, in a statement. “At this stage, it is a tried-and-true format that is supporting online growth.”
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