Total online advertising revenue in the US increased by 23.9pc to US$7.1bn in the first quarter of 2008 (Q108).
Although advertising spending across all media is expected to be cut back during 2008 due to the current economic situation stateside, IDC expects internet advertising to continue to expand rapidly during the year.
Internet advertising generated US$5.7bn in revenues in Q107.
“What happens is that the current economic crisis puts pressure on advertisers to save money and find more effective marketing channels,” said Karsten Weide, programme director, Digital Marketplace and New Media, IDC. “Effectively, the crisis accelerates the shift of advertising budgets from traditional media into new media.”
IDC expects ad expenditure across all media will decrease by as much as 7pc in 2008. It anticipates quarterly online advertising growth will increase at rates of around 15-20pc during the year.
Google continued to extend its leadership position in the US internet advertising market during the quarter. The company’s estimated net US advertising market share was 24.8pc in Q108, up from 23.1pc in Q107.
By Niall Byrne
Buy your tickets now!