Online Ad Spend Unaffected by Economic Woes

Despite difficult trading conditions across the globe online ad spend is continuing to hold up, in the USA at least. According to new data released by IDC, total online ad revenue increased by 23.9% to $7.1 billion in the first quarter - up from $5.7 billion in Q1 of 2007.

IDC projects online advertising to continue growing at a rate of 15-20% this year despite their expectation for ad spend across media to decline by 7%. IDC anticipates online advertising to double over the next five years.

"What happens is that the current economic crisis puts pressure on advertisers to save money and find more effective marketing channels," said Karsten Weide, program director, Digital Marketplace and New Media at IDC. "Effectively, the crisis accelerates the shift of advertising budgets from traditional media into new media."