Analysts release online forecasts

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New York—UBS Internet analyst Benjamin Schachter has lowered his third-quarter and 2009 earnings estimates for Internet companies that depend on online advertising and consumer spending.

In an Oct. 9 report, Schachter said, “We see no business model based on advertising or consumer spending that will be immune to a downturn. ... As corporate profit forecasts come down, we expect planned advertising spending will be delayed and/or cut.”

Also acknowledging a slowdown, the Berlin-based European Information Technology Observatory said Thursday that the online advertising market is expected to grow 23% this year, to $43.3 billion, after a 26% rise in 2007 and a 33% increase in 2006.

—Christopher Hosford

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