November 20, 2008

U.S. Online Advertisement Is Up Despite Economy

U.S. Internet advertising revenue rose in the third quarter, despite the bad economy, according to an analysis released Thursday.

The report said that online advertising revenue totaled almost $5.9 billion in the third quarter, up 11 percent from the same period last year.  It marked a 2 percent rise from the second quarter.  The report was done by the Interactive Advertising Bureau and PricewaterhouseCoopers LLP.

Companies that depend on Internet advertising, including Google Inc., saw their shares plummet recently on fears that the economy will inhibit growth in what remains a relatively small market.

David Silverman, a partner at PricewaterhouseCoopers, said that because of that climate, the third-quarter growth is "nice to see".

"I think given the economic environment, seeing any increase in any economic activity - let alone advertising - would be a bit of surprise, but speaks maybe to the strength of interactive advertising," he said.

He speculates that advertisers will keep spending on online ads, especially in an economic downturn, because they are often paying for ads based on performance. 

"They actually see they're getting a result for their dollars spent," he said.

Online advertising revenue totaled $17.3 billion for the first nine months of the year.  This compares with $15.2 billion in the same period last year.


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