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Ad Spending Revised Forecasts

     
10:21 am on Mar 19, 2008 (gmt 0)

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A leading marketing forecaster on Tuesday cut its projection for U.S. spending on online advertising this year, signalling that economic troubles are likely biting into corporate marketing budgets.

The revised forecast by eMarketer calls for U.S. advertisers to spend $25.8 billion (12.9 billion pounds) online this year, which compares to its projection of $27.5 billion made in October.

Ad Spending Revised Forecasts [uk.reuters.com]

12:47 pm on Mar 19, 2008 (gmt 0)

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Forecast: To project, guess, estimate.

Their "guess" was off by 6%. I don't think that implies economic troubles...

More realistically it demonstrates the standard deviation of such forecasting...

But it wouldn't be "news" if they didn't throw up red flags every week...

5:28 pm on Mar 19, 2008 (gmt 0)

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maximillianos,
many of us were here when the tech bubble burst not to long ago and companies depending on ads alone went in BK. Let's hope the economy does not slow by that much because ads WILL slow and by a lot.
5:49 pm on Mar 19, 2008 (gmt 0)

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As long as the online advertising market can stay ahead of the scamming/fraud market they should be alright.

My feeling though is that fraud accelerates in a tougher market and competition will price out many mid level businesses because there are less customers to target towards. (hight customer acquisition costs in the midst of higher fraud risk)

8:24 pm on Mar 19, 2008 (gmt 0)

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Online advertising will withstand the storm better than all the others. Adverisers control it down to the last cent spent.

Ignore the doomsters, do as Deitrich Bonhoeffer wrote "Faint not, nor fear, but go out to the storm and the action ..."

7:25 am on Mar 20, 2008 (gmt 0)

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>> Ignore the doomsters

You may do so, but there is fine line between being realistic and what you call "doomster."

This time is different. It appears that cheap money will be gone for a long time. This in turn affects consumer spending, business expansions, new business openings so it will undoubtedly hit advertising. People may disagree on how much.

Once they see 20% of their 401K gone in the stock market, high gas prices, food costs, 28% credit card rates, home equity gone, uncertainty in the job market, people do hold back spending. It's a given.

3:49 pm on Mar 20, 2008 (gmt 0)

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The upside to the downside... Even when the economy is down... folks are always looking for deals online... reading reviews... shopping online... etc. That means people are searching... clicking ads... visiting sites... clicking ads...

I think the internet is a bit more robust than the brick and mortar shops from that perspective...

7:00 am on Mar 24, 2008 (gmt 0)

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Focus on the companies whose products/services are bought by lower-income consumers directly affected by the troubled sectors.

Subprime mortgages - Bear Stearn

The other sectors may not feel a recession whatever the heck that is. Funny how they say you're in a recession before you realize it.

Newsmakers love to drum up fear. Remember when CNN among others was trying to get everyone scared stiff a few years ago about avian flu?!

p/g