With the latest financial problems at Wall Street and the credit crunch, one would really think the online advertising industry would start slowing down. However, this doesn't seem to be the case so far, but there is yet to come.
Here's a bit of what CNET said about it:
Despite an economic turndown, online advertising--and search in particular--is managing to keep its market intact, according to reports on Tuesday by an industry trade group and Wall Street analyst.
According to the Interactive Advertising Bureau, Internet advertising revenues rose 15.2 percent, to $11.5 billion during the first six months of the year, compared with the same period last year. And search advertising grabbed a larger piece of the share, accounting for 44 percent of the market--up 3 percentage points.
Search advertising generated nearly $5.1 billion during the first half of the year, up 24 percent from a year ago. Display advertising, meanwhile, also grew at a double-digit pace of 19 percent to $3.8 billion over the course of the first half of the year.
(Credit: Interactive Advertising Bureau)
But what about the third quarter and the market meltdown during the early days of the fourth quarter?
Two players in online advertising say conditions are remaining stable, according to a Tuesday report by JPMorgan analyst Imran Khan.
Search engine marketing (SEM) companies such as Didit and Reprise Media report that third-quarter search budgets were up, mainly due to a shift from more traditional marketing to search advertising.
Well, obviously the search advertising industry isn't going anywhere anytime soon. However, things could still change according to the way the economy is going right now. It's pretty foolish to think that the credit crunch will have no effect on the online advertising industry, because it will affect a lot of new companies, and even bigger companies, because they have to start going into the bunker mode, and one of the first places that they can start cutting is advertising.
True, there seems to be evidence that advertising is still yet climbing, but this could be due to the changes in search advertising itself, now including more industries, so as to gain revenue from a bigger source.
0 comments:
Post a Comment