Banner Banter ; Online Advertising May Slow Down in the Us, Not in India.

Business TodayMay 01, 2008

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Summary


Ever since the first banner advertisement was sold online 15 years ago, online advertising has come a long way. It is estimated to be a $42-billion industry in the US, and has proved to be a growth engine for companies like Microsoft and Google. Internationally, online advertising is projected to grow six times faster than traditional media through 2009. By 2010, online is forecast to represent one-tenth of all advertising spending.

But all is not hunky dory, say technology-media-telecom (TMT) experts at Deloitte Consulting. According to a report by the consulting firm, online advertising in 2008 will see obstacles such as growing apathy towards this medium. The report says: According to a recent survey in the US, many consumers find that internet advertising is more intrusive than print, and consumers preferred to view print advertising to advertisements on the web. Many suggested the websites should offer consumers the option of blocking advertisements. Secondly, this year will see growing opposition to a key feature of online advertising, which is tracking of online behaviour whose main purpose is to enable the delivery of targeted advertising. In 2007, resistance was already being manifested in the form of organised lobbies and a 'do not track' campaign, adds the report. Confidence in online advertising could be further undermined if high-profile industry figures continue to question publicly online advertising revenues and valuations, feels Deloitte.

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Extract


Banner Banter ; Online Advertising May Slow Down in the Us, Not in India.

Yet, fears of a slowdown in online advertising in t...

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