US internet advertising suffers first decline in 7 years
Finally succumbing to the recession, online ad spend has suffered their first quarterly year-on-year decline in seven years.
Figures collected by the US division of the global Interactive Advertising Bureau (IAB), and audited by PriceWaterhouseCoopers, revealed a 5% fall in online ad spend to $US5.5 billion for the first quarter of this calendar year.
Last year, online ads grew 11% is the US, the slowest rate of increase since 2002.
The New Zealand wing of the IAB - which also works in partnership with PwC - found 43% year-on-year growth for its most recent survey period - the fourth quarter of 2008.
For the whole of 2008 internet ad spend was up 22% as online closed in on radio and magazines.
NZ IAB chief executive Greig Buckley told NBR he expects double digit growth this year.
In the US, the IAB says the quarterly decline is not systemic. It expects growth in online advertising to resume once the recession lifts.
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Comments and questions2
Online ad spending is actually up in certain categories. For example, at Hydra we are seeing tremendous growth in CPA or Cost Per Action online advertising. More and more marketers are moving to a pay-for-performance model for their advertising. Cost Per Action, Cost Per Engagement and other specifically measurable performance-based marketing models are the key to efficient and effective marketing in this economy. Marketers aren't avoiding advertising online they are just doing it more wisely.
Online ad spending is actually up in certain categories. For example, at Hydra we are seeing tremendous growth in CPA or Cost Per Action online advertising. More and more marketers are moving to a pay-for-performance model for their advertising. Cost Per Action, Cost Per Engagement and other specifically measurable performance-based marketing models are the key to efficient and effective marketing in this economy. Marketers aren't avoiding advertising online they are just doing it more wisely.
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