Forecast: ’09 Web Ad Prices Could Be A Tenth Cheaper

2009 internet display advertising prices will be between five and 10 percent lower than last year as publishers try to tempt cagey advertisers to continue spending through the recession, according to a Billetts report (via Independent.co.uk)…

Billetts: “It was said that offline advertising was migrating online, but our forecast is predicting online revenues to grow by just £15 million in 2009 with the growth of recent years stalling.”

For a medium-term comparison – consider that UK online ad spend was rising by about 41 percent annually through 2007 and 2008, according to IAB UK figures at the time…

— It could be worse – TV ad rates will be down 16 percent and revenue down 14 percent (ie. £475 million lower), on weak advertiser demand and migration to the web, to a 20-year low CPM of £4.16 – but that’s still favourable compared with online.

— National newspaper ads will be five percent cheaper than last year on average, with ad revenue down 18 percent (ie. £252 million lower).

— Ads in consumer magazines will be nine percent cheaper, with TV listings mags and women’s titles worst hit. Ad income will be 18 percent down (ie. £100 million lower).

(Photo: aNataB, some rights reserved)