Financial Slump Impacting Display Advertising

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Financial Slump Impacting Display Advertising

Display advertising has taken a hit this year, largely due to a 27% decline in display spending from financial institutions. This partly accounts for what is a 6% drop in year-to-year spending on display ads.

But not all is lost. Finding life difficult in search advertising, MSN, AOL, and Yahoo are busy revamping their display ad technology, producing pinpoint targeting and ads that convert without clicks. Display certainly has an affect on consumers. One study showed that consumers were 56% more likely to buy a product from Alltel if they saw both display and search ads than if they merely saw a search ad. Even without clicks, the right display ad can subconsciously work for a customer down the road. Networks like Facebook are increasingly producing ads that even I click on.

Overall ad spending is healthy, with search advertising leading the way. The first two quarters of 2008 saw a jump in online ad spending of 11%, in spite of uneasiness about the economy.

There are other bright spots: entertainment ad spending went up 47% year-to-year, and automotive ads increased by 45%.

Source: Kathleen at Adotas.com

This entry was posted on Saturday, September 20th, 2008 at 7:13 pmand is filed under Search Engine Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.