Analyst predicts lower online ad spend
Internet Marketing
05 September 2008
JPMorgan analyst Imran Khan has lowered his forecast for spending on online advertising.
He said that he had cut his outlook from a predicted 20 per cent increase in expenditure this year to 14 per cent. However, his forecast for search ads was lowered by a smaller proportion, indicating a shift towards ads based on performance.
Spending on search is likely to increase by 27 per cent in 2008 compared with the previous prediction of 32 per cent, with 2009 set to bring a 26 per cent rise, Mr Khan said.
"As advertisers become more conservative with their ad spend, we think that the long-tail advertisers will shift toward performance-based advertising forms," he explained.
In the UK, search engine marketing expenditure is expected to increase by almost a quarter this year, although this is not as high as the spending seen in recent years, according to E-consultancy.
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