Jefferies Releases Global Online Ad Forecast
A firm has released new estimates regarding global online advertising, and – you guessed it – they’re lower than what was mentioned in its previous projection. Things aren’t all bad, however, as Jefferies & Company believes the long-term outlook is positive and search is still going strong.
Jefferies pointed out that search spending is performance-based and offers a clear (and often good) ROI. Industry growth of 26, 23, and 19 percent is supposed to take place this year, next, and in 2010, respectively, all of which is sure to benefit Google.
The Jefferies report also noted, "Search engine optimization companies seem to be growing in popularity as marketers and agencies use them as a way to increase the efficiency and profitability of their sites at relatively attractive costs . . ." Which will hopefully benefit lots of WebProNews readers.
As for display advertising, that’s when we get into the less encouraging stuff. Look for growth rates of 14, 7, and 3 percent over the next few years. And overall, "We’re lowering our 2008 growth estimate for global online advertising to roughly $50B from $52B . . . . We’re also lowering our 2009 estimates to 16% from 19%, or to $58B from $61B."
Meanwhile, even as Jefferies tossed Google a compliment and some theoretical cash, the firm cut its price target on Yahoo.