Report: Interactive ad spending will slow in 2009

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Williamsburg, Va.—While the trend away from traditional media campaigns continues and interactive online advertising is still growing overall, some components of interactive advertising will show little or no growth, or may even decline in 2009, according to the “2009 Outlook: Local Interactive Advertising” report from research and consulting firm Borrell Associates.

Borrell forecast that offline media spending will drop 1.4% next year, while interactive media overall will increase by 7.2%. Local interactive ad spending will grow by 7.8% in 2009, reaching $13.9 billion, compared with an anticipated $12.9 billion in 2008, according to the company.

However, that represents a large slowdown from this year’s 48% growth rate in local interactive advertising expenditures.

The company suggested the anticipated slowdown may be a function of a maturing market, and may not rebound when the economy improves.

—Christopher Hosford

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