Menu
US online advertising shrinks in Q1

US online advertising shrinks in Q1

US online advertising spending, which has been key in financing the Web 2.0 wave of internet innovation, shrunk in the first quarter, the first year-on-year quarterly drop since 2002.

Spending hit US$5.5 billion, down 5 percent when compared to 2008's first quarter, the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) said Friday.

The last time the market experienced a year-on-year quarterly drop was during the dot-com crisis, when spending fell for eight straight quarters, from 2001's first quarter through 2002's fourth quarter.

The 2009 first-quarter drop thus breaks a string of 24 consecutive year-on-year quarterly increases in U.S. online spending that began in 2003's first quarter.

The slowdown in online advertising has been precipitous. Spending grew 35 percent in 2006, 26 percent in 2007 and 11 percent in 2008.

If spending shrinks in 2009, it will be the first annual decrease in U.S. online ad spending since 2002, which recorded a 16 percent drop.

The news is clearly bad for all advertising-supported Internet companies, from big ones like Google, Yahoo, Microsoft, Facebook and AOL, to small startups with ad-dependent sites and Web applications.

The silver lining, according to the IAB and PwC, is that online advertising has been hit less severely than other types of advertising and that growth in this market is expected to resume once the US economy recovers.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags international news

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments