An article published in The Australian yesterday announced the recession appears to be over for the online advertising industry. The claim: online advertising effectively bottomed out last month, and is expected to return to normal by Q4 2009. Author Lara Sinclair cites forward booking by larger publishers in boasting that Q4 revenues could be as much as 20% higher than the same period last year -- during what some would refer to as the initial onset of the recession in this industry.
This echoes the optimism of a recent News Corporation investors meeting, where Rupert Murdoch was quoted as saying that US markets were, "...much better than they were fourth months ago." According to the commercial director Kerry McCabe of online market leader Ninesmsm, growth, ”…will be in line with projections: double-digit and then some." A recent study by Interactive Advertising Bureau, found that the collective revenue of the world’s top publishers dropped by 11% last August. This is cited as the worst performance since IAB collecting data in 2002.
According to Sinclair, online was the only form of advertising with significant growth rates prior to the recession. Consequently, online is recovering more easily than traditional forms of media – television and print are not expected to rebound until sometime next year. For online, the travel and retail categories are expected to lead the recovery. Industry experts such as Yahoo7 Chief Robert Lund, predict that the coming months will witness a major upswing in behavioral targeting.
via Lara Sinclair @ TheAustralian
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