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paidContent - IDC: Global Online Ad Spending in Q2 Shrunk 5 Percent; U.S. Down 7 Percent

This story was written by David Kaplan.

The globe online ad industry won’t see signs of a turnaround until the middle of next year, says IDC analyst Karsten Weide, echoing some other recent reports on the timing of a recovery. This quarter and the fourth will resemble Q2, when online ad spending worldwide contracted by 5 percent to $13.9 billion. The Asia Pacific region was one of the few right spots, with slight gains; it was the second consecutive quarter of decline for the U.S. market, which was down by 7 percent year-over-year. The main culprits: display and classifieds were both down by double digits, more than offsetting paid search’s continued stability. Release

Although TNS and Nielsen have suggested that display advertising in the U.S. may already be turning the corner (here and here, respectively), IDC said that category was down 12 percent in Q2, as paid search held stable. Classifieds fared even worse. The weak job and real-estate markets pushed online classifieds down 17 percent. One of the hardest hit was online recruiter, which had 31 percent decline in ad dollars.

The most optimistic thing IDC’s Weide can offer is that while online advertising may not get any better in Q3, at least it’s not getting much worse.


By David Kaplan
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