Five years after the bubble burst, online advertising has proven to be for real, and while Web 2.0 is a great mantra and all that, CNET reminds us that the rate of online ad growth is slowing and
would grind to halt once again in an economic recession. Happy Wednesday, folks. That said, just about everybody from Microsoft to the newest Silicon Valley startups are banking on ad sales to support
their services. In fact, Microsoft is shifting its entire business model, moving full throttle into the online ad business with AdCenter. And why not? Many big advertisers with flat year-over- year
budgets--like auto makers--are diverting dollars away from old media to Web advertising. Is growth slowing? Sure, from 30 percent, but Internet ad spending is still projected to grow around 25 percent
this year. In fact, Parks Associates expects Web spending to rise to $23.5 billion by 2010. Economic downturn? Well, if there is one, this time around clients might decide to withdraw funds from less
measurable media.
Read the whole story at CNET News.com »