Online Ad Growth Slows with Economic Downturn

may 19, 2008  08:33 am
"While search advertising remains strong, there are signs that the growth in online advertising -- particularly in more elaborate display ads -- is slowing down," the New York Times reports. The prices for online display ads are falling as well: The prices paid for ads bought through networks dropped 23 percent from March to April, according to one index. Search ads remain popular since "they are considered cheap and effective among marketers -- even in a potential recession," according to the Times. One analyst thinks recession fears might actually help some media companies, as marketers move their budgets online. "People switch their advertising budgets out of traditional advertising formats -- TV, radio and print -- and move more online because it's got higher performance, it's cheaper and it's more measurable," Sanford C. Bernstein senior analyst Jeffrey Lindsay says.