Online Ads Down, Mobile Ads Up

Kim Mays

ComputerWorld reports that online advertising is in trouble. IDC forecasts that companies will cut back on the number of ads placed online this quarter, which is very bad news for companies who derive their revenues from Internet advertising - companies such as Facebook, Yahoo, Myspace, and Google are all likely to suffer.


According to TechCrunch, it was just months ago that ad revenues were predicted to grow by 10 percent in 2009, after the market grew by 18 percent last year. But IDC now predicts a 5 percent drop in the first quarter, followed by possible further drops during the second.


However, a relatively new advertising venue - mobile phone advertising -- is in line to grow by a predicted 130 percent in the next four years, says InformationWeek. Kelsey Group Program Director Michael Boland says:


"As mobile data consumption rises, we expect local marketing to be a big winner. There is a strong correlation between local search and the mobile use case, which will cause a good portion of the ongoing mobile application boom to focus on local."

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