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Internet-Search Ad Spending Declines 8%, Marketing Company Says

2009.02.17

Spending on U.S. Internet-search ads dropped 8 percent in the fourth quarter as the recession curbed demand for online marketing, according to Efficient Frontier Inc.

Travel and entertainment businesses had the biggest drop, reducing ad spending by 24 percent, according to the marketing firm, which tracked four industries in a report due tomorrow. Financial-services companies cut their spending by 20 percent, while the automotive industry posted a 15 percent decrease. Retailers were the only group with an increase, at 9 percent, as they targeted bargain hunters by advertising more online.

The recession triggered a general slowdown in advertising, worsening at the end of the year. That may have eaten into sales at Google Inc. and Yahoo! Inc., the top U.S. search engines, which depend on ads for most of their revenue. Still, search- engine spending stabilized by the end of the fourth quarter, said James Beriker, Efficient Frontier’s chief executive officer.

“We had panic in the street at a macroeconomic level,” Beriker said. “We all have lots of challenges in the marketplace, but search isn’t going anywhere.”

Google plans to give fourth-quarter results Jan. 22, while Yahoo issues its report on Jan. 27.

Small advertisers -- those spending less than $50,000 per month on search ads -- decreased spending by 23 percent from a year earlier, Efficient Frontier said. The biggest advertisers saw a smaller drop, at 9 percent.

Efficient Frontier, based in Sunnyvale, California, helps customers market themselves on search engines. The company, which bases its study on data from some of its clients, hadn’t reported a decline for the four industries since it began compiling the data in 2007.

Forrás: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=azjQ308s8BAk

 

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