Growth in online ad spend to slow

Online ad spend is expected to experience a downturn this year as a result of weakening economic conditions. According to a new PricewaterhouseCoopers report total UK online ad spend growth will slow by 18% to 20% in 2008.

The On media: Online Advertising Through a Downturn – Weathering the Storm report published today (September 24) reveals that while display advertising will be hit the hardest, online classified spending will grow in the car and dating sectors. However, PwC expects a 30% increase in search advertising spend this year.

In addition, online will continue to benefit from a shift away from traditional forms of advertising, such as print and TV.

Earlier this month, research from the European Interactive Advertising Association claimed that the internet was becoming the medium of choice after it found 81% of advertisers had increased online ad spend this year.

The body also says that search engine marketing will continue to see strong growth and will boost the medium overall, while display ad sector will slow.

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