Web Ad Spending Continues Ascent

http://www.mediaweek.com/mw/content_display/news/digital-downloads/metrics/e3i79825b157551fdb94d51b10fd6f2bcad

Online ad spending continues to climb at a healthy pace, though the revenue numbers recorded during first quarter of 2008 snapped a 13-quarter streak of record growth.Internet advertising hit $5.8 billion in the first quarter, the second largest spending period ever, according to the latest Interactive Advertising Bureau report, which is compiled in conjunction with PricewaterhouseCoopers. During the fourth quarter of 2007, the industry pulled in $5.9 billion, it’s highest revenue total ever, marking the 13th consecutive quarter the industry could claim such a statement.While 18 percent growth would certainly be considered solid, particularly when compared to other segments of media, it’s possible that the Web is maturing to the point that it’s ad revenue will be effected by seasonality. Or it’s possible that the industry is feeling the slight effects of a slowed economy.However, analysts still predict that 2008 will be a strong one for the medium. “The fundamentals of interactive advertising spend continues to be positive and I would expect to see continued growth in the future,” said David Silverman, partner, Assurance, PricewaterhouseCoopers. “The cyclical fourth quarter to first quarter drop in traditional media advertising spend, combined with an overall economic slowdown, resulted in a not so unexpected first quarter slowdown in the growth of online advertising.”