Contributing to the lowered estimate is a slowing of display advertising expenditures as automakers and retailers cut their ad budgets, according to eMarketer. While the earlier forecast predicted display ad spending would rise 16.9% this year, the new prediction calls for a 3.9% rise.
Paid search’s growth is lower, too, at 21.4% this year, down from 25.5% in 2007. Paid search is expected to grow 14.9% next year. Despite the continuing decline, eMarketer noted that paid search will grow more than the overall online market both this year and next.