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Online Advertising Slowing? Just More Money – Expect New Products in Social Networks February 12, 2008

Posted by John in Technology.
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New data is out confirming that online ads are growing.  Many people are looking at a potential online advertising recession. NOT. In fact more money is going into online ads then ever before. It’s recession proof.  Last week Forrester came out with research confirming it. Now IDC has data confirming this online ad growth trend.

The real story is that Google is losing share *and* the ad formats are changing. In discussing the company’s latest quarterly report about Internet advertising, IDC analyst Karsten Weide said businesses affected by the slowing U.S. economy will slash other advertising budgets before paring their online campaigns. “We think there will be some effect on ad spending overall, but we think online ad spending will almost be unaffected even if there’s a depression,” he said.

For the first time ever, IDC’s research found Google actually lost a bit of market share. “Their domestic sales growth has slowed down,” the analyst said. CPM based ads are dying giving way to Microcontent and social network ads.Look for new standards to come from online advertising groups like the Association of Downloadable Media (ADM).

Big Picture: Ads dollars are coming from Broadcast and Print sectors. The money has to flow somewhere and it will be online. Expect video advertising to dominate the big dollars.

No recession here only expansion.

Comments»

1. Kim Farrows - February 12, 2008

what new products do you see coming. Can you expand please?

2. Mark Rae - February 13, 2008

Are the big boys losing share?

That iis only good for business; we need more compatition.

Excellent post, thanks for sharing.

3. Online Advertising Broken or Just Changing? It’s Changing « Furrier.org - Business & Technology Blog - May 13, 2008

[…] Online Advertising Broken or Just Changing? It’s Changing May 13, 2008 Posted by John Furrier in Technology. trackback Rob Hof has a post about online advertising showing signs of weakness. I would generally agree with Rob, but would say it’s growing in another direction. […]


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