Advertisement Revenue Slightly Increases on Internet

Advertising revenue on the Internet increased by 10.6 percent or $23.4 billion last year in the United States. While this may be already an impressive result amid the ongoing crisis, experts said the growth rate is slower compared to initial prediction, adding that Internet business is facing flat growth in this year.

A new report told that advertising in the Internet has posted a 10.6 percent increase in 2008, but it is starting to hit a plateau, an industry expert said on Tuesday.

David Silverman, a stakeholder at PricewaterhouseCoopers, said that in United States alone, Internet advertising has grown 10.6 percent or some $23.4 billion in paid advertising.

Silverman, who contributed in the report as well as a representative for trade groups in online advertising, said that the current economic condition has posted a significant blow in the growth of the market. However, he added that the downturn only affected the short-term growth.

Based on a Nielsen report, Internet Marketing was the only advertising media that increased in spending last year, aside from cable TV that has 7.8 growth records. Other media, which can be considered as “offline” spiraled down in its revenue. Nielsen said that the annual revenue generated by non-internet advertisements declined by some 2.4 percent last year.

Newspapers ads, as well as magazine and other printed advertisements, declined sharply by an average of 7.7 percent.

Despite the increase, Nielsen said that Internet advertisements never really had a significant increase during the last four years. The survey company said that it has now hit a flatline, and will soon fall or tick upward depending on the outcome of the stimulus provided by the government to companies investing on the Internet.


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