Menu
Growth in US online advertising slows in Q3

Growth in US online advertising slows in Q3

The growth slowdown affecting U.S. online ad spending this year continued in the third quarter, bad news for the many Internet companies in this market, like Google, Yahoo, MySpace and Facebook.

Online ad revenue hit almost US$5.9 billion in the third quarter, up 11 percent over the same quarter last year, according to a report from the Interactive Advertising Bureau and PricewaterhouseCoopers.

However, the growth rate in 2007's third quarter was slightly more than 25 percent, compared with the same quarter in 2006.

That trend of growth deceleration is consistent with a recent IAB/PwC report about 2008's first half, when spending grew 15.2 percent, compared with growth of 27 percent in the first half of 2007.

In the first half of 2006, online ad spending grew even faster, at a 37 percent clip over the same period in 2005.

The widespread economic woes are to blame for the slowdown in growth, but, compared to other forms of advertising, the online medium is in a better position to weather the storm, the IAB and PwC said Thursday. The reason: online advertising offers marketers more precise ways to measure its effectiveness.

Still, the robust growth in online advertising in the past five years has fueled the Web 2.0 boom in innovation, which could be threatened by the slowdown, coupled with a parallel decrease in venture capital funding.

Web 2.0 technology revolutionised the consumer Internet market and is now shaking up workplaces with community-focused, Web-hosted applications for video and photo sharing, online music streaming, blogging, wikis, syndicated feeds and social networks, as well as hosted IT services, like storage and computing capacity.


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 GoogleFacebookMySpaceYahooonline advertisinginternational newsslow down

Events

Why experience is the new battleground for partners

Join us for an exclusive webinar, in association with Hewlett Packard Enterprise and Technology Services Industry Association (TSIA) and learn about the latest industry insights and how technology services continue to evolve to deliver differentiated value, and how partners can be successful in 2021 and beyond.

Featured

Slideshows

Channel kicks 2021 into gear as After Hours returns to Auckland

Channel kicks 2021 into gear as After Hours returns to Auckland

After Hours made a welcome return to the channel social calendar with a bumper crowd of partners, distributors and vendors descending on The Pantry at Park Hyatt in Auckland to kick-start 2021.

Channel kicks 2021 into gear as After Hours returns to Auckland
The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Show Comments