Worldwide spending on Internet advertising contracted for the second consecutive quarter, but the situation no longer seems likely to get worse,according to new research.According to research firm IDC, global spending on Internet ads contracted for the second consecutive quarter, by 5.9 percent, coming in at $13.9 billion, which is down from $14.7 billion in the same quarter last year.
The report found that all global regions posted losses, with the exception of the Asia/Pacific region and Japan, which saw slight gains in the second quarter (2Q09). All major online ad formats suffered year-over-year revenue losses. Paid search advertising was least affected, display spending shrunk 12%, while classifieds lost 17%, the IDC said.
Things are bad, but they’re not getting any worse and are likely to look up soon,” said Karsten Weide, program director of digital media and entertainment at IDC. “We think the industry will continue to see losses in the third and fourth quarters, but the growth rates – or the loss rates, if you will – will eventually begin to improve. However, we also believe the industry may have to wait until mid-2010 until it sees real growth again,” he added.
IDC’s Worldwide and U.S. Internet Ad Spend Report 2Q09 is yet to be released. It models worldwide and regional ad spending trends, and monitors the US market in detail.
The Q2 drop in the US outpaced the global average, falling by 7 percent, from $6.6 billion to $6.2 billion. Search ads were affected less than display and classified ads in the US. Google was the sole publisher in the US to post a gain, while Monster.com suffered the biggest decline of 31 percent. AOL and eBay were also hit hard by the decline in classified ads in the US, the IDC report found.