Friday, May 23, 2008

eMarketer Article - Online Ad Spending Holding Strong

Here is the link to the article : http://www.emarketer.com/Article.aspx?id=1006319&src=article1_newsltr

Key takeaway

For the full year 2007, online ad revenues totaled $21.2 billion, according to the Interactive Advertising Bureau (IAB)/PricewaterhouseCoopers (PwC) "2007 Internet Advertising Revenue Report." That was 26% higher than 2006, which was itself a record year.

My Commentary: As the consumer spending declines offline increase in buying online makes sense to me. Why drive several miles to the store when you can order online.

At a recent training course I heard 2 of my fellow attendees say that they lived in the City and did not have a car so they made use of online grocery ordering services. They had evaluated zipcar but it was expensive to use that service for their shopping trips.

This may not hold true for a long time if the economy is not stimulated. First people will cut their shopping trips and luxuries like eating out. That can extend to putting off online purchases too. IS the growth trend for the online sales going to keep going up ?What do you think ?

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