Today’s New York Times discusses a declining online advertising industry and credits the economic downturn for the industries woes. The article cites the following statistics:
- According to PubMatic, between the months of March and April prices paid to networks for online ads dropped 23 percent; and for larger publishers the decline was steeper at 52 percent.
- AOL’s display advertising declined by 18 percent, to $191 million.
- Internet ad revenue growth at The New York Times Company slowed to 16 percent in the most recent quarter from 20 percent a year earlier
- WebMD Health and Weather.com experienced shorter buying commitments from advertisers; a result of wanting to test ad products prior to prolonged commitments.
While banner investments on ad networks have declined, search engine marketing appeared unaffected. Google’s revenue in the United States was up thirty percent from last year, while Microsoft’s and Yahoo!’s online revenue jumped 29 and 9 percent respectively. A majority of search engine revenue comes from search advertising.
Read the entire article here.