Friday, August 1, 2008

Borrell Associates: Grim times ahead for online advertising?

Found this recently published article from imedia connection whilst browsing that caught my attention.

It's based on research from Borrell Associates regarding the state of the online advertising market and predictions moving forward.

Article is here -->

The important bits (remember these are US figures) ...

- Spending on online display ads (web page banners, pop-ups, etc.) have been flat the past two years and are expected to top out at $12.6 billion in 2008, then decline more than 50 percent by 2012.
- Paid search advertising will peak at $16.9 billion by 2009 and start declining.
- Online promotions generated about $8 billion in 2007. This category will nearly triple by 2013 to $22.8 billion, exceeding all other online advertising categories, including paid search, banners, email and online audio/video advertising

So ... do we all instantly become experts in online promotions in order to sustain ourselves? Probably not ... in my experience, promotions need a lot of media (display and search) to generate viable traffic so I think some of the predictions are a little dramatic.

Interesting reading nonetheless.

No comments: