Sorting through the spending figures

June 18, 2008

calculator.jpgSurprise, surprise! Online advertising spending appears to have slipped quarter-to-quarter, the first time that’s happened in three years, according to a new report.

Before pulling your hair out, keep in mind that first quarter online advertising spending rose 18 percent from the year ago period — it’s just that it slipped from the fourth quarter,  according to the IAB. So while still robust, it seems that online advertising isn’t impervious to the economic troubles gripping the United States.

Another report, this one by PricewaterhouseCoopers, takes a longer view of advertising in new media. It finds that advertising tied to digital and mobile media will account for 24 percent of the growth in the media and is projected to grow at a compound annual rate of 19.5 percent to 2012.

There are a lot of different numbers to sort through, and they address different things, but the upshot seems to be this: Digital media may suffer a bit during the downturn, but smart money still has it booming over the coming years and leading the way for growth in media.

Keep an eye on:  

  • Sam Zell’s Tribune could face default by year’s end, even with attempts to sell assets and debt to shore up its debt, says a Standard & Poor’s analyst (Bloomberg
  • DreamWorks SKG and India’s Reliance ADA Group are near a deal to create a new movie venture, which would provide director Steven Spielberg with the cash to finance his DreamWorks team’s departure from Paramount Pictures (
  • Business community site LinkedIn has pulled in a $53 million infusion from venture capitalists, valuing the company at $1 billion (Reuters)
  • A new study finds that advertisements in traditional media are “much more likely” to make a  positive impression with consumers than those appearing in digital media (NY Times/TV Decoder)
  • Microsoft has bought Navic Systems, a company that helps advertisers place spots on TV programs, for an undisclosed amount (
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The problem with such forecasts, as I have remarked, is that they often ignore the larger context — such as the amount of uncertainty caused by the sub-prime crisis, food prices or oil reaching new highs.

Posted by Narayanan Madhavan | Report as abusive