Online ad market improves

22 September 2009

HELSINKI: Global online advertising expenditure stabilised in the second quarter of this year, after struggling during the first three months of 2009, figures from Strategy Analytics show.

The company reported that internet ad revenues declined by 3.1% in Q2 on an annual basis, but rose by 0.6% compared with the period from January to March 2009.

Martin Olausson, an analyst at the research firm, said that "similar to last quarter, all the US online advertising companies, except Google, are continuing to see their revenue decline, while the majority of international online advertising companies are still growing."

"With its strong growth, the Chinese online advertising market remains a bright spot in the market, signalling an earlier recovery than most Western markets," he added.

Moreover, Olausson signalled that smaller firms within the online ad market had suffered more heavily than their larger counterparts.

"A trend of market concentration has emerged, whereby global online advertising revenues concentrate to bigger and more influential companies, as small advertising companies find it more difficult to attract advertisers in the recession," he suggested.

Data sourced from Reuters; additional content by WARC staff