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Web Video Ads Are Only Growth Segment As Advertising Industry Declines 10%

by David Mercer | 7月 22, 2009

The advertising industry has been suffering particularly badly during the recession, as indicated by the parlous state of many print and broadcast media businesses. Strategy Analytics' latest advertising forecast indicates that total advertising revenues in North America will decline by 10.2% this year, after a 1.9% decline in 2008. Television managed to resist the downturn until this year, but is expected to decline 10.7% during 2009. 2009 will also be the first year of decline for the relatively new online advertising sector. After growth of 11% in 2008 we are now forecasting a decline of 3.0% in 2009. Even search advertising, the mainstay of the business, is expected to fall, driven by a steep decline in revenue per search. The only online segment which will see growth this year is web TV and video advertising, where revenues will grow 33% and which is now becoming a $1bn+ industry. This clearly reflects the explosion in web TV and video services previously documented in Strategy Analytics research. The good news is, there is plenty of room for growth in this segment as web video transfers to the big screen. While times are clearly tough for the online industry, its share of the total advertising market continues to increase, and is forecast to reach more than 17% by 2013. In the long run it may be no bad thing that online players now accept they are not immune from wider economic conditions. Twitter: twitter.com/DavidMercer_SA Client Reading: Americas Advertising Forecast, 2006 - 2013 Add to Technorati Favorites
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