Online ad outlook cut
The outlook for growth in spending on online advertising has been slashed by a JPMorgan analyst.
Imran Khan said that he now expects spending to rise by 14 per cent this year rather than 20 per cent - but indicated that search spending may fall by a significantly smaller proportion.
He predicted that expenditure on search ads will rise by 27 per cent this year, compared with the previous forecast of 32 per cent. 2009, meanwhile, will bring an increase of 26 per cent, he said.
Mr Khan attributed to this to a marked shift in the type of ads marketers want to invest in.
"As advertisers become more conservative with their ad spend, we think that the long-tail advertisers will shift toward performance-based advertising forms," he said.
Marketing resources site E-consultancy has also predicted lower growth rates for the UK search engine marketing market this year.
