Online Ad Revenue

IAB article reports: “that Q3 2008 online ad revenues were flat. The Q3 revenues of $5.9 billion were 2 percent higher than the Q2 2008 results.  For the first nine months of 2008, revenues totaled $17.3 billion, up from $15.2 billion in the same period a year ago and surpassing the record set in the first nine months of 2007 by nearly 14 percent.”

What will be telling and presumably a barometer for 2009 is the “Q’4 bump”. Advertisers always have excess money in Q4 that they “need” to spend before end of year in order to keep their budgets intact (use it or lose it). Not sure there will be such monies this Q4?

Online ad spending

Online ad spending

Will display ad spending take a hit in 2009? I bet you dollars to donuts there is a material shift in spending from display to SEM during the course of next year in tandem with a pullback in overall spending. While I don’t agree with some prognosticators that we will experience a 40-50% reduction in online ad spending…I think there is a possibility of 30%+ reduction in online spending as companies decide to sit on the proverbial sidelines during 2009 and let the bad news filter through.

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