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Analysts Predict First Contraction of Online Ad Market Since 2001

By AAN Staff
february 27, 2009  01:48 pm
The research group IDC has reversed its online advertising growth estimates from 10 percent growth in 2009 to a 5 percent drop in revenues in the first quarter that could get worse in the second. It would be the first contraction in online ad spending since the dot-com bubble burst in 2001. TechCrunch's Sarah Lacy says that the online ad industry needs to come up with innovative products to thrive. "There's too much outsourcing to the ad networks and too much of an assumption by the portals and other large properties that gaudy eyeballs will be enough," she writes. "That's old media thinking. It's enough to get ads when times are good, but not necessarily to keep them when times get bad."
View full article at TechCrunch
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