The Online Ad Recession Is Officially Here: First Quarterly Decline In Revenues
It was the last part of the advertising sector to fall and may be the first to recover, but online advertising is now in a recession. With the four largest Web advertising companies (Google, Yahoo, Microsoft, and AOL) having reported March quarter financials, we can get a pretty good sense of how the sector did as a whole. If you add up the online advertising revenues of these four online advertising bellwethers, the total online advertising revenues for the quarter came to $7.9 billion, a 2 percent decline from a year ago and a 7 percent decline from the fourth quarter.
The growth of online advertising has been slowing down for a while, but this is the first quarter to experience an actual decline in revenues. Given the poor performance reported by all of these companies during the quarter, this shouldn’t come as a surprise. Only Google was able to eke out any annual growth, the rest all saw online advertising revenues drop. The fact that Google’s advertising revenues represents 68 percent of the total and that it saw modest growth helped to dampen the overall decline.
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