Online ad revenue declines

Online advertising declines in Q1 ‘09Amidst the news about bailouts, layoffs, mortgage foreclosures, and declining earnings, you may have heard the ‘R’ word – that’s right, recession. At this point, I don’t think anyone is arguing that we aren’t in a global recession; traditionally, two down quarters in a row is used as the benchmark for indicating the economy is in trouble. With something like online advertising, where campaigns are often pre-purchased, it can sometimes take longer to notice a decline. The Interactive Advertising Bureau (IAB) and PricewaterhouseCooper have released a report on the online advertising revenues in the US. Being an online business, we have a number of advertising campaigns targeting specific sites and search terms, like dedicated servers, dedicated hosting, and managed hosting. In a tougher market, we definitely have to consider adjusting the way we are advertisin, so it would only make sense that the online advertising sector would be affected by the global recession. What’s interesting is people’s opinion on where things will go from here. At last check, the TechCrunch poll was fairly close to 50-50 on whether or not the worst is behind us or if the second quarter would show further declines.

Visit the poll here