Online Ad Sales Growth Anticipated to Fall

Online Ad Sales Growth Anticipated to Fall

Imran Khan, an internet analyst forecasts yet another drop in online advertisement sales subsequent to a gloomy end of the third quarter in the advertising market. Advertisers have been trimming their budgets down through spending from offline channels to the web.


Khan anticipates a 25 percent annual spending growth, three percent lower than his original forecast. The J.P MOrgan analyst also sees a 13 percent annual growth by 2009, down from his previous estimate of 19 percent.



The changes in projection attributed to the continuing drop in branded display advertising as well as search advertising. Khan is  looking ahead at a steady CPM rates as publishers struggle to sell through their premium inventory. In addition, Khan anticipates a cut in ad spending, accounting only $8.45 billion - a huge slip from 16 percent to 6 percent  growth forcast.