Google ad income growth dropped to single-digits in the last recession

An overview of Google and online advertising spend between 2004 and 2012.

Google was not immune to the last recession, as growth in advertising income dropped to single-digits (+8.5%) in 2009, equivalent to $1.9bn in absolute terms. This was down from a third (+31.3% – $5.2bn) in 2008 but ahead of the wider online market (+0.2%, or $141.2m).

It is conceivable that large brands will shift budgets online to focus on short-term goals during uncertain times. But much of Google's and, indeed, Facebook’s ad income is drawn from a long-tail of SMEs – those most exposed to a severe downturn. This explains, in part, why Facebook is now offering these companies...

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