Online advertising spending on the USA is set to drop this year for the first time since 2002. eMarketer estimates online ad spending will be down 4.6% this year. However, the slowly recovering economy, combined with basic structural changes in how marketers and the public use media, will lead to Internet ad spending growth in early 2010

The various components of online advertising react differently to cyclical and structural changes. While one format might show relatively healthy growth in the recession, another suffers due to the same economic climate. For example, pay per click advertising will grow by 2.2% in 2009, while classified ad spending will decline by 30.2%. Even during 2010 and 2011, eMarketer projects search will continue to grow at mid-single-digit rates, while classified spending will decrease again both years.

The full report is available here

Anthony Quigley