Has the US slump hit online advertising?

The long-term trend for online advertising revenue may positive, but evidence is emerging that the current weak economic conditions in the US may be putting a break on growth.

paidContent.org reports that, according to figures produced by the Internet Advertising Bureau, the US online advertising has gone backwards in early 2008, from $US5.9 billion in the fourth quarter of 2007 to $US5.8 billion in first quarter 2008.

That is the first time in three years that online ad revenues have experienced a quarter to quarter decline and suggests that the slowdown in the US has well and truly spread beyond the housing market to infect all sectors of the economy.

It’s not all gloom and doom, of course; at $US5.8 billion, the first quarter 2008 result is still the second highest ever, and up 18.2% on ad earning levels from 12 months ago. But until the US economy turns around, the online advertising sector there could be in for some lean times.


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