Is Online Advertising Slowing Down?
Yesterday I was reading this post about online advertising growth slowing down at TechCrunch. Erick (of TechCrunch) did some calculations based on overall advertising revenues of 4 companies (Google, Yahoo, Microsoft and Yahoo) to see how the online advertising industry is doing.
As per the results shown by Erick, the growth in the online advertising industry is slowing down in the economy.
As you can see in that the growth was at 12.73% in the quarter 4 of 2007 and has decreased to 0.61% in quarter 3 of 2008 slowly. Surely the growth has come down, but it is really that much worrisome?
This is the time when most of the companies in the world are showing either negative growth or going bust. Is it very bad to have a growth of 0.61%. In my opinion, no.
In such economic scenarios, that main focus of the companies is to sustain. If they can sustain in such times, they will come up much better in the future. If you can sustain yourself even with 0% growth, its good.
The same is true for our small businesses (or even our small websites) as well. The growth might not be coming with the speed we expected in the past, but this is the time to sustain your business/websites. So try to cut your useless expenses (like weekly treats and lunches) and save some money in liquid. Try to sustain in these bad times and I am sure that the earnings will be back on track ’soon’ (well, even I don’t know who soon is that ’soon’, may be 2 to 4 quarters).
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Jim Karter on November 17th 2008 in Advertising Networks, Business, Earning Money, Internet Marketing
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19 Responses to “Is Online Advertising Slowing Down?”
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Deepak responded on 17 Nov 2008 at 11:00 pm #
If a business completely depends on new customers for its revenue, then it is going to suffer during economic meltdowns.
I feel each business should have a % of their income from solid assets (passive income).
At such stages, they can rely on the income from their assets to sustain the company instead of income from the actual business.
make money responded on 17 Nov 2008 at 11:10 pm #
The amarican economic really smack the advertising revenue.I hope it will recover very soon
Jim Karter responded on 17 Nov 2008 at 11:57 pm #
Good point Deepak.
Envirogle responded on 18 Nov 2008 at 5:52 am #
@ Jimmy
It is absolutely great news that Google is still growing in these times. Any growth right now is great. As Jim said “If you can sustain yourself even with 0% growth, its good.”
I guess this is why Google sent out that letter.
http://www.jimkarter.com/2008-11-03-are-adsense-publishers-in-panic.html
They are worried that their “quarterly earnings” growth has dropped from 13% to 1%. Google is not happy with that and I presume are worried.
This information sheds light on why Google thought that the letter was necessary to calm and settle the webmasters.
Great post Jim
Mega Champ responded on 18 Nov 2008 at 10:42 am #
Full time bloggers who are making their living by online advertising, are the one’s who get hit most by this. People having full time jobs and part time blogging won’t be feeling much impact.
Adi Moga responded on 18 Nov 2008 at 2:14 pm #
The crisis is due to the real estate speculation market.. Our businesses will not suffer this crisis because the web economy is based on real needs which are also know as keywords.
Envirogle responded on 18 Nov 2008 at 8:56 pm #
@ Mega Champ
That it true, but some bloggers like Jim, blogs about how me makes money online, so this is a supplement, to his income he gets from, Adsense, Kontera, etc.
Play Games Win Prizes responded on 19 Nov 2008 at 12:20 am #
I was just reading a lot of commotion on this in the arcade forums today. Seems like arcade sites are taking a small hit too
-Mike
adri responded on 19 Nov 2008 at 4:43 pm #
Yes it’s hard to make money now, and google search also check the Quality content
Driveway Sealing responded on 19 Nov 2008 at 9:15 pm #
I have actually seen an increase in revenue on a few of my sites. I think it is probably
seasonal and it also depends on the niche.
Make Affiliate Money responded on 20 Nov 2008 at 12:43 pm #
Does this mean PPC costs are coming down due to lower competition?
Interesting to see how the currency changes effect things. i.e. if I have a PPC campaign with Adwords and I have set my clicks at a certain amount (in UK pounds) and the value of the pound decreases against the $ US then my clicks are not worth the same as someone who is keeping their campaigns the same level in the USA.
I suspect this could have an impact in addition to the economic slowdown.
Armaan Bhati responded on 20 Nov 2008 at 2:43 pm #
I don’t think advertising is going down. It just their revenue that is going down.
Envirogle responded on 20 Nov 2008 at 4:10 pm #
@ Armaan Bhati
Your right, no one said advertising is going down, we think its slowing down. Still moving forward, but slowing down.
meeting rooms responded on 21 Nov 2008 at 2:27 am #
It’s been an upsurge in revenue with online business compared to its offline rival. We’ve seen increase in sales and traffic in most online activities and 2009 won’t be any different.
data entry from home responded on 25 Nov 2008 at 10:37 am #
Yes it is really a tough job to make profit online. The response has come down drastically.
Intra day tips responded on 03 Dec 2008 at 6:15 am #
This seems to be lilttle bit true no doubt.I myself has seen its effect but the rising Rupees against dollar is a postive change in these times.
Srednarb responded on 13 Dec 2008 at 8:15 am #
Ah, the effect of economic downturn. been struggling this days, few clients coming in.
PocketWealth responded on 03 Sep 2009 at 7:32 pm #
Making money online is like offline you have to advertise no matter what. Great info very informative.
Tyrone Shum responded on 20 Oct 2009 at 5:58 pm #
It is really a must that the business have a established set of customers already so that they need not to depend on new customers. However, there are still a lot of ways and what we just need is persistence to stand up again in times of economic meltdown.