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Online Ad Sales Growth in “Steady Deceleration”

June 17, 2008
by Eric Savitz
Blogger and Columnist, Barron's

Eric Savitz

Well, imagine that: the economy really does have an impact on the growth of online advertising.

In a research note this morning, Pacific Crest analyst Steve Weinstein reports that Q2 online advertising is likely to grow in “the high teens” versus a year earlier, down from Q1 growth just under 20% and Q4 growth of 23%, “indicating a modest but steady deceleration.”

Weinstein says the weak economy has lead to a tightening of overall ad budgets. While that is driving some advertisers to spend a larger slice of their budget on the Web, taking share from television in particular, he finds that “online advertising would be growing faster in a more robust economy and ad market.”

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