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Internet Ad Revenues Drop 5pct In Q1 2009

2:25 pm on Jun 8, 2009 (gmt 0)

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Internet Ad Revenues Drop 5pct In Q1 2009
Ad revenues drop 5% in the first quarter of 2009, according to figures from the Interactive Advertising Bureau (IAB) and analyst firm PwC. Net ad spend in the US was $5.5bn (3.46bn) by the end of March, down from $6.1bn at the close of 2008.

The IAB said the fall was the first significant slump in ad revenues after more than six years of almost uninterrupted increases.

3:25 pm on June 8, 2009 (gmt 0)

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The good news is that online ad revenues dropped far less than revenues in traditional ad media did. According to an Online Media Daily article [mediapost.com] from June 5th, some analysts are still predicting online ad growth for 2009 as a whole (though others are less optimistic).

The graph at the bottom of the Online Media Daily article may offer some perspective. The graph shows quarterly online ad revenue growth in the U.S. from Q1 2001 through Q1 2009. It's worth noting that 1Q 2009 isn't the first time there's been a dip in revenues early in the year; the chart shows noticeable valleys in 2002 and 2008, with recoveries later in the year in both cases. Also--and perhaps even more important--1Q 2009 U.S. ad revenues were considerably higher, despite a weak economy, than 1Q revenues were in the happier days of 2007.

3:45 am on June 9, 2009 (gmt 0)

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And from the rest of the AP article--

....the Internet's search and advertising leader, Google Inc., to continue growing despite the recession. The Mountain View-based company's U.S. revenue edged up by about 3% in the first quarter. Most of Google's ad sales are tied to search requests that inform the company of a user's interests.

So you google adsensers out there have nothing to worry about. And the adwords people like me are still going to pay the same.... no bargains in a down market.

10:00 pm on June 10, 2009 (gmt 0)

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And the adwords people like me are still going to pay the same.... no bargains in a down market.

Not true at all...sort of. I cut my AdWords spending by 75% this year and simply dropped most of my ad campaigns. Granted, some of the money has been redirected towards other advertising methods, but the overall marketing budget is down 25%.

Now for the "...sort of": Google isn't giving me any discounts on keywords to try to win me back. So you're right, no discounts.