Online advertising: slowdown in growth

In a global market in recession by 3%, Internet advertising continues to grow. It hasn't been totally immune from the slowdown however: growth is nowhere near as impressive as last year, according to two studies by TNS Media Intelligence and Capgemini Consulting.

In the first half of 2008, internet advertising was up an impressive 35%. A year later, growth has dropped to around 8% according to the studies: a very significant fall but this does not take away from the fact that the web remains the fastest growing advertising sector, far in front of radio (with a growth rate of around 2%). Other medias such as television, cinema and advertising hoardings have all seen their advertising budgets shrink.

Internet has therefore reinforced its position at number 3 in the advertising media rankings, behind the printed press and television and totals over a billion euros of net investment. The number of advertisers is however slightly down: growth is driven by those already present in this media who are increasing their advertising investment. New advertisers do of course test online advertising media but the new arrivals are fewer than those who are turning away from the online option.

Unsurprisingly, at 400 million euros, sponsored links remain the preferred advertising channel – it is the easist to target and is billed per click. Display on websites is down 7% and is now only a short head in front of advertising in online directories.

The net, a media that is still young and allows contact with a growing number of potential clients, is for the moment doing better that other advertising channels. This is good news for sites but perhaps a little less so for ad-allergic readers.