Published by admin on 11 Dec 2008
Online ad revenues grow despite economy
The following article was posted on the Nasdaq website. I found it very interesting. It gives insight on the Interactive Ad industry and the challenges all types of advertising is facing due to the current state of the economy. Although internet ads are in a better position because you are able to track performance.
“The internet advertising industry has managed to buck the slumping economy with this week’s announcement that revenues climbed to $6 billion in the third quarter of 2008.
The $5.9 billion in revenues represent an 11 percent gain over the third quarter of 2007, although the current figures are only two percent higher than they were in the second quarter of this year.
“Interactive advertising continues to be the most measurable and cost-effective way to reach consumers, and we see more and more marketers seeking to harness its power,” said Interactive Advertising Bureau President Randall Rothenburg. Still, Rothenburg also acknowledged that growth in advertising revenues had “stabilized” due to the current economic climate.
Total online advertising revenues have nearly tripled since 2000 and exponentially since such tracking began in 1996, when online advertising revenue for the entire year was reported as $267million.
David Silverman of PricewaterhouseCoopers LLP also cited the economy as an ongoing challenge for any type of advertising, but suggested that internet ads are “better poised to withstand the storm” because of its “ability to combine performance-based advertising along with broad-based branding.”"