Wednesday, June 10, 2009

Net advertising: the recession caused a 5% drop in revenues in Q1 of 2009

[bbc] The global economic slump has hit net advertising hard in early 2009.

Ad revenues dropped 5% in the first quarter of 2009, according to figures from the Interactive Advertising Bureau (IAB) and analyst firm PwC.

Net ad spend in the US was $5.5bn (£3.46bn) by the end of March, down from $5.8bn in the same period in 2008.

The IAB said the fall was the first significant slump in ad revenues after more than six years of almost uninterrupted increases.

While ad revenues have dropped in a few quarters since 2002, in particular they dipped during mid-2008, the 5% fall is by far the largest ever seen.

"Interactive advertising has taken its rightful place as a fixture on marketing plans across sectors, which means we aren't immune to broader economic trends," said Randall Rothenberg, president of the IAB in a statement.

Global slump hits net ad revenues

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