Fear of recession will shift advertising budgets to online media

Fear of recession will shift advertising budgets to online media

Opinion is divided over the outlook for a US recession in 2008, with some economists claiming that the US already undergoing recession (although the crucial two-consecutive-quarters-of-negative-growth criterion has not yet been met). Analysts predict that overall, we will see slower spending in advertising using traditional media and a shift towards the online space.

Others predict that the fear of recession will weaken business models based on consumer advertising. If a serious downturn or recession really starts to bite hard, ROI from online marketing may insulate it from reduced spending at a macro level.

We believe that efficient web businesses are less likely to suffer in such an environment, though talk of a recession remains 'talk', at this stage, and is by no means a certainty.