WSJ: Internet Ad Spending Fall 5% In First Quarter
2009 June 8
According to the Wall Street Journal, U.S. online ad spending declined 5% in the first quarter, which is the first decline since 2002.
“”"The latest expenditure, $5.5 billion, compares with $5.8 billion during the first quarter of 2008, when online-ad spending surged 18% from a year earlier. It comes after U.S. online ad spending grew 11% in 2008, the slowest rate since 2002.”"
The good news from the report is that search advertising held up relatively well in the first quarter and that display advertising was particularly weak.
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The first quarter does not mean much to me. If we get a second quarter of continues drop in spending then it would be worrying. Considering the state of our economy, financial crisis, housing crisis, unemployment rates across the country a 5% drop in the first quarter is pretty good. This is the money saving quarter for most businesses, there was a Presidential change and the tube said kept talking about a “depression around the corner”. %5 is peanuts and I’m very happy to be in the online advertising industry.
On another note Fox Interactive is closing offices in SoCal and planning deep layoffs according to a few articles out this morning.
http://www.latimes.com/business/la-fi-fox6-2009jun06,0,568996.story
Hopefully this trend does not continue as it will mean that deep cut backs and layoffs are hitting interactive advertising late.