Though the economy has been a source of financial pain in some industries, the first quarter of 2008 saw online advertising remaining quite intact. According to new data released by IDC, total revenue increased by 23.9% to $7.1 billion in the first quarter. That was up from $5.7 billion in Q1 of 2007.
IDC projects online advertising to continue growing at a rate of 15-20% this year despite their expectation for ad spend across media to decline by 7%. IDC anticipates online advertising to double over the next five years.
“What happens is that the current economic crisis puts pressure on advertisers to save money and find more effective marketing channels,” said Karsten Weide, program director, Digital Marketplace and New Media at IDC. “Effectively, the crisis accelerates the shift of advertising budgets from traditional media into new media.”