Signs that online advertising is on the wane

One of the areas of the media that has been relatively unaffected by the slowdown in the sectroir is that of online advertising but it appears that this may no longer be the case.

This morning's FT reports that

Shudders from the credit crisis have reached the online and media industries as research shows that internet advertising is facing a slowdown after five years of breakneck growth.

and adds that

Research published on Monday by Enders, a media analyst group, pared back growth rates for the UK online advert market to 18.5 per cent for 2008 to £3.3bn, against estimates of a 28 per cent increase on 2007

However the next year will still see growth,it just will not be at the astronomical rates of the past few years

Enders estimates display adverts will grow by 9.8 per cent to £650m, and classifieds by 7.8 per cent – representing a “collapse” on last year’s equivalents of 30.5 per cent and 54 per cent respectively, said Mr Maude. In contrast, search adverts will grow by 25.4 per cent to £2bn this year, Enders forecasts, because they give a quicker and easier return on investment.