Financial Meltdown To Hit Online Ad Market

The financial mess we’re facing will have lots of consequences for the ad industry. BusinessWeek takes a look at a slowdown affecting one of the hotter sectors in the biz: online advertising.

Even before the financial market malaise took a turn for the worse with the bankruptcy of Lehman Brothers, Bank of America’s (BAC) purchase of Merrill Lynch (MER), and the government bailout of AIG (AIG), researchers were cutting back online advertising forecasts. In August, research firm eMarketer cut projections for Internet ad spending this year to $24.9 billion, the second revision of estimates first released in October. The firm expects Internet advertising growth to slow to 17.4% this year fom 25.6% in 2007. Next year, growth will slow even more, to 14.5%. “Online advertising will not grow as fast because of the economic problems,” eMarketer senior analyst David Hallerman says.

My clients are nervous all around. Are yours?

About Dan Goldgeier

Dan Goldgeier is a Seattle-based freelance copywriter with experience at advertising agencies across the U.S. He is a graduate of the Creative Circus ad school, and currently teaches at Seattle's School of Visual Concepts. Dan is also a columnist for TalentZoo.com and the author of View From The Cheap Seats and Killer Executions and Scrubbed Decks.