The Times They are a Changing – Online Advertising Falling Below Predictions

Christophor Rick   |   April 15, 2009   |  

Online advertising sales were predicted to grow by a whopping 18% for 2009 by ZenithOptimedia who recently revised their numbers down to around 4.8%. eMarketers also had a nice 8.9% increase predicted but today halved that to 4.5%

Other firms who have yet to revise their numbers are still predicting double digit growth for the market this year. They include:

  • BMO Capital Markets – 13%
  • Collins Stewart – 10.1%

Several others are just below the 10th percentile Morgan Stanley (9.7%) and Jefferies & Co. (6.9%).

Some firms haven’t got the rose-coloreds on and are predicting near zero but still predict growth Barclay’s Capital (2.3%), Myers Publishing (2.9%) and ThinkPanmure (3.0%). On the other side of that line are three firms that are calling for losses with UBS who published their numbers in February, predicting a 6% decline.

What’s it means for you?

Well if you’re a publisher it means that there’s less revenue to be had and the same amount of places for it to go, that means more work to get less of it. Meanwhile if you’re and advertiser it could be a totally different ballgame. Prices could be falling (as has happened with television) meaning slots become more affordable allowing your ad dollars to go further. A wise move by those who don’t want their bottom lines hit too hard this year but will it work?

If you’re advertising let us know what you think. Are you spending less or more? If you’re publishing are you seeing the well dry up in some areas or cost-per-X falling?

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Posted: in Video Advertising, Video Industry News
About the Author - Christophor Rick
Christophor Rick is a freelance writer specializing in technology, new media and consumer electronics. His work appears on numerous sites across the web including ReelSEO. He is also Vice-President of Business Development and Publishing at Gamers Daily News and his past work has included press releases, copywriting, travel writing and journalism. He went to uni for Biotechnology, did an internship with NASA and has written 2 as-yet-unpublished books (a 3rd is in progress). His newest project R2 Relations is leveraging the power of social networks to increase brand awareness and traffic for companies and their products and creating online communities for increased interaction with the products and brands.

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  • In 1920 majority of shareholders sold their stake in Ford because they insisted the auto industry had reached its peak. Maybe they were right in light of the events with the Big 3 recently.

    Many are saying that Online Advertising has reached its peak already.

    Major trends follow the S-curve where it takes 50% of the time to reach 10% of the market and the same amount of time to reach 90%.

    With that logic, online advertising is now at 8-9% of all marketing budgets. It would be a strong indicator then in the next 10-12 years it will be 90%.

    We are about to witness a major shift and transfer of wealth. Which side will you be on?

    Try Online Advertising with FreeKii.com, receive $5 Ad Credit With Account Activation.
  • Good idea on the logo colors......

    sweetness
  • Sue
    The times are changing. At hydra we don't see online advertising slowing, we see it shifting. More advertisers are requiring accountability. Utilizing Cost per action programs give advertisers this control. With CPA advertisers only have to pay for the ads where they get the desired action such as a form filled out or a video watched or even a sale. Advertisers are willing and are spending when they know they get results. That is why we are growing and adding advertisers.
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