The latest media study says that online advertising is expected to fall 4.5% to $24.5 billion and pick up in subsequent years, according to eMarketer.
The prediction may cause a sigh of relief for a host of those working within the sectors that rely on ad dollars. And if the prediction comes true, Internet-related sectors in the media industry may experience more M&A. Marketing and interactive services as well as the online media and technology industries, in particular, could top $862 million worth of M&A deals, Jordan, Edmiston Group Inc. said they recorded in the first quarter of 2009.
EMarketer says online advertising spending will grow from $24.5 billion in 2009 to eventually $37.3 billion in 2013. The growth seems logical since advertisers are trying to reach as many targeted eyeballs as possible and Internet usage has grown as consumers turn away from other traditional forms of media that are struggling such as newspapers and magazines.
Times have been so bad for newspapers that some, such as the Seattle Post-Intelligencer, have closed their presses in favor of producing only an online edition. For businesses like the Seattle Post-Intelligencer, the growth could be a financial bonanza for its bottom line in the long run.
But, at the same time, eMarketer's numbers could crater if the economic situation in the U.S. worsens. Traditionally, companies cut back on advertising during worsening economic times, so if the economy doesn't improve, advertising as a whole may not improve. In fact, eMarketer intones that the economy has bottomed out.
"Now that we've entered into the depths of the current recession, the Internet is emerging as one of the only bright spots in an otherwise decimated media landscape," adds Geoff Ramsey, eMarketer CEO. - Gerald Magpily
