Advertising slowdown
For the first time in a while more companies have reported advertising budget cuts in UK (21%) than increase (19%). Data as of Q108.
Although the whole advertising market is still expected to grow in UK in 2008, much of the growth will happen in online advertising. Some of the steepest cuts have been reported in direct marketing, sales promotions and corporate events and hospitality. The deterioration of the advertising market has been quite sudden, and is the consequence of the deterioration of consumers confidence and the broader economy.
The shift from more traditional advertising to online makes sense: rates are more favorable, and there is the added benefit of easier tracking of ROI. Sponsored search still commands the most money, but brand/banner is growing faster. This is good tailwinds for online advertising and will probably accelerate the reshaping of the advertising industry.
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