Economic downturn won’t touch online ads

There could be some good news for online-focused businesses amidst the spreading economic gloom – according to analysts, online advertising may be the most downturn-resistant form of advertising.

According to ClickZ, technology research firm IDC predicts that despite the much slower economic conditions forecast for the US in the years ahead, internet advertising revenue is likely to double from $US25.5 billion to $US51.1 billion between 2007 and 2012.

The reason, according to IDC, is that businesses will respond to the worsening economic squeeze by shifting resources to marketing options that they believe will give them the biggest – and most clearly measurable – bang for their buck.

“The economic crisis is accelerating this,” IDC program director Karsten Weide says. “When there’s an economic crisis, the first place companies look to save money is marketing. The marketing people are now under a lot of pressure to deliver the same amount of exposure for less money.”

IDC says that shift will see online advertising increase its share of the US ad market from 8.6% to 15.6% over the next four years, in the process overtaking the traditional leaders of free-to-air television and newspapers.

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