Slowdown in online ad sales predictedPosted 09/08/2004
Online advertising sales in 2009 will grow by just 11 per cent, down from 65 per cent in 2003, a new report predicts.
Jupiter Research claims that spending on online adverts is set to slow dramatically in future years.
The figures are likely to fuel concern about search giant Google's forthcoming stock market launch.
"This market has grown so phenomenally over the past number of years. Now it is maturing," Nate Elliott, a Jupiter analyst, wrote.
Google makes most of its money by selling targeted adverts linked to searches and its initial public offering (IPO) is one of the most anticipated of recent years. The firm aims to generate as much as $3.3 billion through the sale of its stock.
The IPO is expected to take place this week, but recent online advertising forecasts and regulatory problems have caused analysts to question the launch. Google admitted last week that it had issued shares and options in breach of Securities and Exchange Commission rules.
Google revealed last month that its sales grew by just seven per cent in the three months to June, falling well short of the company's expectations and viewed as an early indication that its business is slowing down. © DeHavilland Information Services plc
© 1998-2004 DeHavilland Information Services plc.
|
