A report from eMarketer, cited by Forbes.com says that whle Internet advertising will remain strong, it won't reach quite the levels originally projected in the U.S.
The problems in the credit industry, among other economic factors, continue to impact a number of businesses across the board, and is the major reason for the readjustment of the numbers.
For example, orginally, eMarketer estimated that the ad market in the U.S. would reach $44 billion through 2011, now that has been adjusted to $42 billion.
In the shorter term, original estimates that the online advertising market in the U.S. would reach $27.5 billion in 2008, has been changed to $28.8 billion. Even so, the online ad market will continue to grow strong, and in general, there should be strong growth for some time to come.
All of us will need to simply lower our expectations some as to how much our ad revenue will be, and make decisions based upon these revised numbers.
As mentioned here though, we will have to watch the fate of the U.S. dollar, as that, along with what the Federal Reserve does as far as it relates to interest rates, could cause some changes in the numbers above, as it looks like the problems of banks aren't near to being over, and 2008 will bring a lot more write-downs with it.
Like I mentioned, we could see some changes in the rate of Internet ad growth because of this, but we will still see growth. The interest rates and U.S. dollar strength must be watched in how it may change the amount of advertising put up online.
This isn't to be alarmist, but to be realist. These are very real possibilities that could slow down ad growth on the Internet. Simply be prepared in case it happens.
Comment Preview