Online Banner Advertising Blog – Rupiz Ads

Online Advertising – feeling the pinch of global economic slowdown

Global economic downturn has impacted online advertising, with display advertising being affected more vis-a-vis others.

The slowdown in the world economy has started pinching the online advertising as well as companies are feeling constrained by their small budgets. So far, this web-based form of advertising was considered to be immune to such economic influences, but now marketers are taking tough decisions about spending on online advertising. Their budgets for 2008 are becoming leaner and meaner. Of late, many companies are said to have reported slow growth, which may continue throughout 2008.

It is expected that some types of advertising are likely to be hit harder than others. Analysts predict that search engine advertising, which constituted 41% of online advertising earnings, is likely to stay stronger.

Analysts say some companies have a tendency to force cuts in display advertising because they think that it will help them refurbish their image rather than effect direct sales as search advertisements do. An advertising agency has revealed that web users become so used to display advertising that they have stopped clicking on them as they did when the Internet was newly introduced.

As an alternative way, companies are developing websites for their brands to draw online viewers through games, funny videos, and prize giveaways. Websites that provide special advertising options will not be able to match those websites that feature search advertisements.