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Revenue From Online Advertising Slows

Monday, May 19, 2008
By bMighty.com Staff

With the economic recession to blame, Web publishers, including AOL, Time Warner and Yahoo, have seen a decline in revenue from display advertising, in particular, as well as a slowdown in overall advertising growth.

According to PubMatic, a Palo Alto, Calif.-based advertising-technology company, the prices paid for online ads bought through ad networks dropped 23 percent from March to April, with large Web publishers faring the worst, dropping 52 percent.

Good news for Google: Search advertising remains a bright spot among spenders. Also, ad networks, which fan out ads to thousands of sites, have been gaining favor over portals. "Portals make it easier for us to buy and place media on behalf of our clients," says one media planner. "But as time continues and as analytics capabilities increase, you find that your media dollars can work better elsewhere across a range of different sites."

Source(s): The New York Times

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