Though Internet advertising has been vulnerable to the overall economic decline, search advertising has become more desirable for marketers. Still, U.S. search advertising saw its annual spending increase slow down a bit from its 2007 growth.
During the first half of 2008, $5.06 billion was spent on paid search, according to a report released by Interactive Advertising Bureau/PricewaterhouseCoopers. This reflected a 23.6 percent increase compared to the first half of 2007 when paid search spending was $4.10 billion.
However, search advertising saw its annual spending increase $1.89 billion in 2008, reflecting a slower growth compared to the $2.01 billion in additional year-over-year spending in 2007, according to eMarketer.
Search advertising annual spending increases are expected to remain relatively sluggish until 2012.
Video advertising saw a 245 percent increase in revenues during the first half of 2008, thanks mostly to a low base figure from the first half of 2007.
Sponsorships and classifieds both saw declines during the first half of 2008 compared to the same period in 2007. Classifieds lost 5.2 percent, while sponsorships lost 23.3 percent in revenues, according to the IAB/PwC study.
Search advertising’s share of total online ad spending increase to 45.3 percent in 2008 from 41.5 percent in 2007.
eMarketer attributes this to search advertising’s performance-based approach, which allows marketers to keep this area accountable and controlled during tough economic times.
Source:
http://www.emarketer.com/Article.aspx?id=1006853
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