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Report: Online Ad Growth To Slow On Weak Economy

  • Adweek, Wednesday, July 9, 2008 11:45 AM
A new survey claims that America's slumping economy is having an effect on online ad growth. Conducted by William Blair & Co, the new survey forecasts that the gloomy economic outlook will contribute to slowing growth. The investment bank queried 150 Chicago-area interactive marketing companies about their budgets, and two thirds of respondents said economic conditions would affect spending.

According the results, the respondents expect Internet advertising to grow slightly more than 16% in the next year, less than the 19% William Blair tracked in previous surveys. Respondents pegged paid search and ROI-based direct response ads as the sectors most likely to thrive.

"Online's healthy, but the economy is definitely having an impact," Sean Riegsecker, CEO of Centro, a Chicago ad service for newspaper sites, told Adweek. "In a weak economy, people are going to move more towards direct response. We're seeing brand advertising take a much bigger hit this year."

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