Online Ads Slowing Down Too

Spending Up Slightly in Third Quarter, but Growth Flattening

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NEW YORK (AdAge.com) -- The bottom hasn't fallen out of online advertising, but growth has certainly screeched to a halt. That's the takeaway from the latest figures from the Interactive Advertising Bureau, which said third quarter online ad revenues reached $5.926 billion, only a 2% increase from the prior quarter.

The third-quarter tally represents an 11% increase over the same quarter last year, but a continuation of the flattening of the growth curve during 2008.

"The growth of interactive advertising that we've been experiencing over the past few years has stabilized due in large part to the difficult current economic climate," said IAB CEO Randall Rothenberg.

The question is whether the fourth quarter of 2008 will match the fourth quarter of 2007, the current high-water market for online advertising, at $5.96 billion.

The current IAB figures do not separate search, which accounts for more than 40% of online spending, from display, which accounts for 20% and is slowing down at a much faster rate.
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