News Flash: Online advertising growing despite lagging economy

During the first quarter of this year U.S. online ad revenue totaled more than $7 billion dollars, an increase of 23.9% compared to the same time last year, according to research firm IDC.

According to the new IDC report, with the decreased threat of a recession, online advertising will continue to grow at a rate between 15% and 20% each quarter.

The IDC also projects that U.S. Internet ad spending will more than double over the next five years.

“What happens is that the current economic crisis puts pressure on advertisers to save money and find more effective marketing channels,” said Karsten Weide, program director-digital marketplace and new media at IDC.

“Effectively, the crisis accelerates the shift of advertising budgets from traditional media into new media.”

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