Google-style ads dominate online ad growth
By Daniel at 4 September, 2008, 3:34 pm
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Internet ad spending continues accelerating
Commentary: And the gap between Google and its foes is growing
By MarketWatch
Last Update: 9/4/2008 11:11:00 AM
NEW YORK (MarketWatch) — Thank heavens for the Internet. Again.
According to The Wall Street Journal, spending on online advertising is
accelerating. It surged 20% in the second quarter in the U.S. alone at a time
when the old media are having problems showing any advertising growth.
The space is expanding between spending on search ads, Google’s (GOOG) franchise,
and investments on what the Journal characterized as “flashier display ads,”
which Yahoo (YHOO) and Microsoft (MSFT) intend to employ to cut into Google’s
advantage.
It’s all about the economy (stupid).
Companies are reining their bets and playing it safe. They’re pursuing the most
cautious route to woo customers on the Internet. Search-ad spending will hit
$10.4 billion, the Journal points out, twice as much as what will be spent on the
display ads.
This can’t cheer up the companies dedicated to using display ads, though. Those
halcyon days are gone for now.
You can’t blame companies for playing it safe as long as they are dogged by a
depressing economy. Sometimes prudence is its own reward.
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