Online advertising: Boost or Bust?

A couple interesting reports out today

  1. Global Budgets To Boost Online Advertising
  2. J.P.Morgan Slashes Outlook
  • Total dollars spent on Internet advertising will continue to increase, the Rubicon Project
  • Millions shifted from traditional advertising budgets into online
  • Web advertising a global industry less subject to any one country's economy
And On the other hand,
  • JP Morgan issued an advisory to investors attributing the downgrade to "further economic deterioration" weakening demand from online advertisers.
  • Calling for an annual rate of online advertising growth of 25% in '07 and 13% in '09 from 28% and 19%.
  • CPMs to remain depressed and sell-through rates will worsen.
  • Lowering fiscal '08 and fiscal '09 domestic display to $7.95 billion (11% growth) and $8.45 billion (6% growth) from $8.15 billion (14% growth) and $9.43 billion (16% growth).
  • Lowered U.S. search growth estimates to 23.4% in '08 ad 17.3% in '09 from 27.4% and 25.5%.
  • Global search ad market expected to expand 34% in '08 vs. 36%.

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