Wednesday, November 19, 2008

Financial crisis would lead to a slowdown in online advertising

Financial crisis would lead to a slowdown in online advertising

Beijing on September 23, Monday, the Financial Times published an article Sasser pointed out that the financial crisis has spread to online advertising market, research institutes show that the UK online advertising market in 5 years in a row after a high-speed growth will be the first time Slow down.

According to media analyst firm Enders study published Monday showed that Britain expected the online advertising market in 2008 grew by 18.5 percent, lower than the same period last year, the expected 2007 annual growth rate of 28%.

Enders estimates that display ads will grow by 9.8 percent, classified advertising will grow by 7.8 percent. Comparative advertising last year showed 30.5 percent growth, classified advertising grew 54 percent, this year's situation is really bad. On the other hand, search advertising will grow 25.4 percent, up to 20 million. This is because the search advertising brought about by the return to investors more quickly and easily.

Finance, real estate advertisers online display advertising is one of the major sources, but by the financial crisis, they have reduced spending on advertising. Add too much stock of display ads, online ads will show a decline in the third quarter.

"Random network (Run-of-site) advertising will decline", Isobar digital media company CEO Nigel Morris pointed out that "video advertising will increase."

In addition, Enders analyst Ian Maude pointed out that search advertising, the driving force remains strong.

Nelson of the United States has issued reports that the United States has declined in the first half of display ads, and pointed out that U.S. financial services industry to cut advertising spending by 27%, while they are online display ad one of the main customers.

The slowdown in online advertising not only affects the portal such as Yahoo, AOL, Microsoft, which has also affected publishers and other media companies, because they are now increasingly rely on online advertising growth.

Search advertising will ensure good growth in online advertising growth is still better than other advertising media. However, online ads show the rapid growth of the stock, in particular, brought about by the social network display advertising inventory, online ad growth will face downward pressure.

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