Citing Google’s most recent report and analysts who agree, the Associated Press says online advertising is poised for a rebound. Meanwhile, Business Week says “Yahoo’s results and its forecast for current-quarter sales beat analysts’ expectations and gave further evidence that this year’s swoon in Internet advertising may be ending.”
“The signs of an online revival are emerging even while advertising in print and broadcasts remain in a slump that has triggered mass layoffs, pay cuts and other upheaval,” the AP report says. It goes on to cite newspaper publishers McClatchy and Gannett, both of which showed huge falloffs in print ad revenues in their third-quarter reports but upticks in their online revenue.
“The harsh reality is that much of the advertising in long-established media, particularly in the classified sections of newspapers, will never rebound to pre-recession levels, said Lauren Rich Fine, a longtime media analyst who is now a professor at Kent State University.”
“… These trends will give Internet advertising 19 percent, or nearly $87 billion, of the worldwide ad market in 2013, up from just 4 percent, or about $18 billion, in 2004, according to PricewaterhouseCoopers and Wilkofsky Gruen Associates.”
That would make the Internet the third-largest marketing medium behind television and, believe it or not, newspapers.
Tags: projections, revenue