More Data about Down Trends in Online Ads

March 23, 2012

This could spell bad news for those depending on online ad revenues. ClickZ reports, “Spending on Digital Ads Fell Sharply in Q4.” According to Kantar Media’s recent data, investments in both search and display ads fell by 6% in the last quarter of 2011. The decline is part of an overall trend, with advertising in all media drooping by 1% from the same time in 2010.

Writer Douglas Quenqua elaborates:

Paid search was down 6.4 percent from the same period in 2010, led by pullbacks from the financial, insurance and local sectors. Display spending dropped 5.9 percent as auto manufacturers, telecom providers and travel companies tightened their belts.

Advertising in television is faring better than in other markets, boosted mainly by investments in sports programming. Interestingly, ads during Fox’s X Factor singing show also significantly bolstered TV’s numbers during 2011’s final quarter.

Magazines and newspapers are faring poorly, particularly Sunday magazines. The article suggests that these dollars may be heading into the digital realm, perhaps into platforms not currently being measured. Television, however, looks like it will continue going strong for the foreseeable future. No surprise there.

Cynthia Murrell, March 23, 2012

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