Global Spending on Internet Ads Decline in Q2
According to the market-research group IDC, worldwide spending on Internet advertising suffered a second straight decline in Q2 by 5 percent. IDC is expecting the drop to continue through the third and fourth quarters and predicts that internet search, display and classified ads may not see a rebound until 2010.
The decline resulted in a total ad spend of $13.9 billion from $14.7 billion in the same period last year. The drop hit most areas of the world except the Asia Pacific region. Japan saw a slight gain in Internet advertising last quarter. US ad spending also declined for the second time in a row by about 7 percent down from $6.6 billion last year to $6.2 billion last quarter.
In terms of channel performance, search was the least affected. Display ads lost 12 percent while paid classifieds are down by 17 percent.
Meanwhile, of the brand platforms, Monster Worldwide Inc (MWW) experienced the greatest lost in its classifieds business while Time Warner Inc’s (TWX) AOL unit suffered from display ads weakness and internal sales problems.
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