US online ad spend drops 5.4% in Q3
US online ad spend was down by 5.4% year on year in Q3 to $5.5 billion, according to new figures from the IAB and PricewaterhouseCoopers.
The reports shows that spending during the first three quarters of the year has been relatively flat. However, online ad spend was up by 1.7% in the third quarter compared to the second quarter.
The fourth quarter is also expected to lift slightly due to the pre-Christmas season, but overall, online ad revenue is predicted to fall for the first time since 2002.
Despite this, online is forecast to experience a gradual recovery into next year and is projected single-digital growth in 2010.
In Q3 2009, Google reported a 7% increase in revenue to $5.95 billion, which boosted its profit by 27% to $1.64 billion. Yahoo! saw revenues fall over the same period but indicated a quarterly rise in premium display advertising.
Both internet search giants claim the worst of the advertising downturn is behind the online ad industry now.
David Silverman, a partner at PricewaterhouseCoopers, said: “While all segments of the media industry have experienced declines, online advertising remains resilient and is once again showing signs of growth.”