Online Advertising's Growth Slows in 2008

Susan Hall

The economy is blamed for most everything these days and it's getting a big rap in news reports showing the growth of Internet advertising seems to be slowing, according to The Wall Street Journal. It says the growth rate is the lowest since 2002.


The trade group the Interactive Advertising Bureau's report showed Internet advertising in the United States grew 10.6 percent in 2008 to $23.4 billion. And it grew just 2.6 percent in the fourth quarter, compared with 2007 growth in the quarter of 24 percent. Overall growth in 2007 was 26 percent.


Search advertisements grew 20 percent in 2008 to almost $10.6 billion and display ad revenue rose 8 percent to $7.6 billion. And in a true bright spot in the report, digital video ads doubled in 2008 to $734 million, according to The Associated Press on


Cable television advertising grew 7.8 percent in 2008, but it was downhill for other mediums: network television, national magazines and local newspapers, according to The New York Times.

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Apr 4, 2009 1:04 AM Online Advertising Online Advertising  says:

When compared to traditional advertising it becomes obvious the objective of marketing.

Marketing is not what generates a sale or closes the sale.  Marketing in any business is to attract a potential customer.

It is the responsibility of the business, be it bricks and mortar or online to close and complete the sale.

So the question is, will advertising decline?  Well to answer that question then simply ask yourself, does your business still need a flow of potential customers? 

If there is a replacement for advertising, online or offline, then maybe. 

Sure businesses have tighter budgets now, but should they increase their potential customer flow or let it dwindle in times of recession?

Simple answer, never let the customer flows dwindle.  Cutting costs and expenses is important when revenue drops, but cutting expenses will not cause revenues to increase.  Only increasing customer flow or web traffic will.

Cost per click and Cost Per Action Online Advertising is a wiser investment now more than ever as businesses begin to measure the quality of marketing efforts and the ROI.


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