In a new report, “U.S. New Media Quarterly Wrap-up 1Q08,” IDC said that while the threat of a recession will decrease ad spending across all media by as much as 7% this year, online advertising will continue to grow at rates between 15% and 20% a quarter.
Over the next five years, U.S. Internet ad spending will more than double, IDC projected.
“What happens is that the current economic crisis puts pressure on advertisers to save money and find more effective marketing channels,” said Karsten Weide, program director-digital marketplace and new media at IDC.
“Effectively, the crisis accelerates the shift of advertising budgets from traditional media into new media.”