Internet advertising spending ‘lower than predicted’
The actual amount of money spent on internet advertising by the end of this year is not likely to be as much as originally predicted.
Advertisers in the US are not expected to have spent as much online by the end of the year as originally estimated, it has been revealed.
According to eMarketer, overall spending on US internet advertising is likely to reach $23.6 billion (£15.7 billion) by the end of 2008 compared to the $24.9 billion which it predicted in August.
Despite a fall in projections however, online advertising expenditure will have increased by 11.3 per cent since 2007.
As a result, there are likely to be more ads on display online which eMarketer senior analyst David Hallerman attributed to falling prices.
He said: “Advertisers will spend more on search this year and in succeeding years than they will on any other interactive ad format.”
It is the current economic turmoil, he added, that is helping to boost search because it is a “tried-and-true format” for supporting internet growth.
Meanwhile, recent research carried out by ITV Local revealed that only a small proportion of web users surveyed claimed they thought overlay video advertisements were a distraction when they were looking at sites.
Increased acceptability of such ad features may contribute to more widespread use of the video platform all over the web, which is likely to mean increased spending on internet advertising in the future.
Living Streams comment: The fact that a drop in growth is news for internet marketing actually demonstrates how much companies should get into it or more into it – when all other sources of new business are in freefall.
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