Online ad revenue shifting in the recession

by Jason Preston on May 1, 2009

From MediaPost:

With the global recession in full swing, says the report, online display advertising has plateaued at 20% of total online ad spend in the U.S.. Spending on online display advertising by financial services, automobile and retail companies has declined steeply. On the other hand, several key, heavy ad-spending industries such as healthcare, consumer products and telecommunications appear to be moving even more spending online.

Online ads will not, I think, ever reach the margins (or maybe even the effectiveness) of print advertising, and news organizations who bet on the web for the future need to either trim down significantly to reflect a smaller revenue potential, or they need to seek secondary revenue streams.

Despite what many people think, micropayments will never work, and there IS a way to charge for news.