J.P. Morgan: Performance-based ads trump all others online

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New York—The tough economic climate is pushing performance-based advertising—and in particular search marketing efforts—to the fore at the expense of brandcentric marketing efforts, according to a new report by investment banking firm J.P. Morgan Securities.

According to the report, “Nothing But Net: Outlook for Global Internet Stocks in 2009,” search advertising will increase 10% this year to about $16 billion. Display advertising, which includes both performance and brand advertising, is expected to grow 6.3% to $8.4 billion.

The report’s author, J.P. Morgan Securities analyst Imran Khan, said online video is not yet a viable marketing tool because of its lack of both a guaranteed audience and an adequate advertising platform, as well as the variable quality of posted videos.

—Christopher Hosford

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