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

Blogging on AdPulp since 2005, 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. In addition, he is a regular columnist for TalentZoo.com. Dan published the best of his TalentZoo.com columns in a book entitled View From The Cheap Seats: A Broader Look at Advertising, Marketing, Branding, Global Politics, Office Politics, Sexual Politics, and Getting Drunk During a Job Interview. Look for it on Amazon in paperback and e-book editions.

  • chidog

    More than just my clients are nervous.