Online Advertising Is Still Growing, Barely

May 19, 2008 – 12:48 pm

by Darren

Every day I read another story about how online advertising is growing. Good. As soon as we start reading stories saying the opposite we’ll have to worry about overall trends. But for now it appears that companies are committed to marketing online, and are committing their long term budgets to the effort. That should bode well for anyone who’s publishing content online.

I also have been catching more reports of companies looking to advertise on social media. This should also bode well for the average blogger, because most blogs get readers from the social media sector. Both of these two trends indicate that there will be more money available for bloggers in the future.

I do see one sign of trouble today, and it comes from this New York Times article.

While search advertising remains strong, there are signs that the growth in online advertising — particularly in more elaborate display ads — is slowing down. In the past few weeks, major online-advertising players, like Yahoo and Time Warner, have posted mixed results.

And online publishers may be getting less money for the ad space they do sell. The prices paid for online ads bought through ad networks dropped 23 percent from March to April, according to PubMatic, an advertising-technology company in Palo Alto, Calif., that runs an online-pricing index. Large Web publishers fared the worst in PubMatic’s study, with the prices they received through networks dropping 52 percent.

Ouch. It looks like a double whammy is hitting. There is a slow down in growth and publishers are earning less per click. It looks like any of us who plan on staying alive need to continue to operate in hustle mode.

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