The Independent: Will the internet survive the economic meltdown? - by Sly Bailey
Will the internet survive the economic meltdown? - by Sly Bailey
With the credit crunch kicking in, it stands to reason that online publishing is in for a torrid time. Doesn't it? Some of the signs, admittedly, aren't great. Yahoo shares are at their lowest value since 2003. Even the mighty Google's grip on growth is loosening, and its net revenue was actually down in the second quarter of 2008 compared to the previous period . Meanwhile, research published last week by media analyst group Enders suggested that growth for UK online media advertising would be considerably lower than the 28 per cent that had been expected for 2008 – its revised estimate is a more modest 18.5 per cent. Financial, recruitment and property advertisers are all cutting their spending plans, the report suggests. Similarly, venture capital groups are becoming worried about their investment exits. There has been virtually no company flotations this year – a common method for a venture capitalist investor to recoup money on a digital publishing investment. The result is that one source of investment capital is drying up.
But before we get carried away on this wave of despair, there are some more healthy predictions out there. On Wednesday, the Internet Advertising Bureau will unveil its own research for the first half of the year. Its chief executive, Guy Phillipson, will tell a Westminster eForum seminar on online advertising that the internet advertising spend has been above expectations for the six months to June, despite the downturn. "We're seeing serious consumer demand, and an increasing realisation that online is the most efficient way of satisfying that need," he says. "Since 1999, online has grown from nothing to a euro 4bn industry in the UK. It's simply the best direct response medium ever invented."
Labels: Advertising, Internet, Publishing
