Online advertising starts to decline
Submitted by admin on Thursday, 17 July 2008One Comment
Tags: advertisers, economy, offline ads, online ads, online advertising, publishers, pubmatic, recession, seasonal trend, sectors, slowdown
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advertising spending that was remaining at a steady pace. This is true no longer. According to a new report by PubMatic, online advertising spending is beginning to decline just like advertising spending has been declining offline.
The report finds that May and June showed the average price for online ads drop by about a penny per ad, which isn’t nearly the slowdown that offline ads have shown. Still, it is interesting to note that online spending is not immune to the economic downtrend in the US.
PubMatic follows the advertising spending done by more than 4,000 online publishers. While they do not identify which properties are pricing at which price point, the overall numbers don’t lie. The company has only been following online advertising pricing since April, so there is no year-over-year data for comparison. It is possible, although unlikely, that this is a seasonal trend that has been going on for years.
“Online advertising is in a holding pattern like many sectors of the US economy,” said Rajeev Goel (via MediaPost). “What we’re seeing is that the economy is in a wait-and-see mode.”
Goel went on to say that even though the pending recession in the US will likely be short-term, advertisers and publishers are waiting to see exactly what will happen.
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Definitely not a good thing… hopefully it will pick back up?
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