US web ad sales slip again

Internet advertising in the United States slipped 5 per cent in the second quarter as the recession extended the first slump in online marketing since 2002.

The $5.4 billion (£3.4 billion) spent on internet ads during the three months ending in June compared with $5.7 billion (£3.58 billion) at the same time last year, according to data released yesterday by the Interactive Advertising Bureau and PricewaterhouseCoopers.



It marked the second consecutive quarterly decline in internet advertising, the first time that has happened since the aftermath of the dot-com bust at the beginning of the decade. The fallout from that implosion resulted in eight consecutive quarters of falling online ad sales.



For the first half of this year, internet advertising totalled $10.9 billion (£6.86 billion), also down 5 per cent from the same period of 2008. Nearly half that money has been spent on search advertising, helping to further enrich Google, which controls nearly two-thirds of the US search market.



Google's ad sales during the first half of the year edged up 4 per cent. Those gains include ad revenue from outside the US.

Unlike the distress and doubt that gripped internet companies during the web's last advertising downturn, the mood is more sanguine this time.



That is largely because this decline is perceived to be a temporary problem driven by the economic upheaval that has waylaid traditionally big ad spenders in the financial services, real estate and retailing sectors. With unemployment approaching 10 per cent, online job listings have also plummeted.



Internet ad specialists are confident revenue growth will pick up as the US economy recovers and marketers increase their efforts to connect with consumers who are increasingly going to the web for information and entertainment.

Life and Style
ebookNow available in paperback
ebooks
ebookA delicious collection of 50 meaty main courses
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    SThree: Trainee Recruitment Consultant

    £18000 - £23000 per annum + Uncapped OTE: SThree: Trainee Recruitment Consulta...

    SThree: Trainee Recruitment Consultant

    £18000 - £23000 per annum + Uncapped OTE: SThree: Trainee Recruitment Consulta...

    Recruitment Genius: Network Support Engineer

    £25000 - £30000 per annum: Recruitment Genius: A Network Support Engineer is r...

    Recruitment Genius: Account Director - Tech Startup - Direct Your Own Career Path

    £25000 - £40000 per annum: Recruitment Genius: This is an exciting opportunity...

    Day In a Page

    Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

    How Isis profits from destruction of antiquities

    Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
    Labour leadership: Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea

    'If we lose touch we’ll end up with two decades of the Tories'

    In an exclusive interview, Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea
    Tunisia fears its Arab Spring could be reversed as the new regime becomes as intolerant of dissent as its predecessor

    The Arab Spring reversed

    Tunisian protesters fear that a new law will whitewash corrupt businessmen and officials, but they are finding that the new regime is becoming as intolerant of dissent as its predecessor
    King Arthur: Legendary figure was real and lived most of his life in Strathclyde, academic claims

    Academic claims King Arthur was real - and reveals where he lived

    Dr Andrew Breeze says the legendary figure did exist – but was a general, not a king
    Who is Oliver Bonas and how has he captured middle-class hearts?

    Who is Oliver Bonas?

    It's the first high-street store to pay its staff the living wage, and it saw out the recession in style
    Earth has 'lost more than half its trees' since humans first started cutting them down

    Axe-wielding Man fells half the world’s trees – leaving us just 422 each

    However, the number of trees may be eight times higher than previously thought
    60 years of Scalextric: Model cars are now stuffed with as much tech as real ones

    60 years of Scalextric

    Model cars are now stuffed with as much tech as real ones
    Theme parks continue to draw in thrill-seekers despite the risks - so why are we so addicted?

    Why are we addicted to theme parks?

    Now that Banksy has unveiled his own dystopian version, Christopher Beanland considers the ups and downs of our endless quest for amusement
    Tourism in Iran: The country will soon be opening up again after years of isolation

    Iran is opening up again to tourists

    After years of isolation, Iran is reopening its embassies abroad. Soon, there'll be the chance for the adventurous to holiday there
    10 best PS4 games

    10 best PS4 games

    Can’t wait for the new round of blockbusters due out this autumn? We played through last year’s offering
    Transfer window: Ten things we learnt

    Ten things we learnt from the transfer window

    Record-breaking spending shows FFP restraint no longer applies
    Migrant crisis: UN official Philippe Douste-Blazy reveals the harrowing sights he encountered among refugees arriving on Lampedusa

    ‘Can we really just turn away?’

    Dead bodies, men drowning, women miscarrying – a senior UN figure on the horrors he has witnessed among migrants arriving on Lampedusa, and urges politicians not to underestimate our caring nature
    Nine of Syria and Iraq's 10 world heritage sites are in danger as Isis ravages centuries of history

    Nine of Syria and Iraq's 10 world heritage sites are in danger...

    ... and not just because of Isis vandalism
    Girl on a Plane: An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack

    Girl on a Plane

    An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack
    Why Frederick Forsyth's spying days could spell disaster for today's journalists

    Why Frederick Forsyth's spying days could spell disaster for today's journalists

    The author of 'The Day of the Jackal' has revealed he spied for MI6 while a foreign correspondent