Wednesday 14 May 2008

Economic slowdown 'hits online advertising revenues'

New research has suggested that the economic slowdown in the US has hit the online advertising industry.

Data released by PubMatic suggested that the average amount of money advertisers paid per thousand ad impressions dropped 23 per cent in April.

Talking to Business Week, PubMatic's general manager, Rajeev Goel, commented: "That's a pretty substantial drop in monetisation, especially for large sites."

The figures showed that larger websites were most affected by the slump, while small sites managed to maintain their online advertising revenues.

It also indicated that social networking sites were seriously impacted by the economic downturn, while technology pages were relatively unaffected.

However, a recent report from E-consultancy suggested that spending on online advertising networks will increase 60 per cent in the year to reach £385 million.

It said that ad networks continued to eclipse the growth that online display advertising was reporting.

Category: Display advertising

Technorati tags: display-advertising economic slowdown hits online advertising revenues