Watch CBSN Live

IAB: Online Ad Spend Grew 10.6 Percent In '08, Dragged Down By Difficult Q4

This story was written by David Kaplan.
[In progress] Although last year was a difficult one for all parts of the advertising business, online ad spending still managed to grow 10.6 percent to $23.4 billion, according to a report from the Interactive Advertising Bureau and PricewaterhouseCoopers. The IAB is hosting a call now and discussing the findings. In keeping with other trends in the economy, online had been holding its own, until it was dragged down along with every other business in Q4.

David Silverman, a partner with PwC, provided a look at annual and quarterly trends. The lowest sequential Q3 to Q4 growth rate, and the first non-double digit growth rate since 2000. The same trend was found from Q407 to Q408. In general, Silverman saw a "flattening out" among display and sponsorships, while search continued to surge. Meanwhile, classified has declined over the past two years. In terms of industry categories,  retail declined 3 percent year-over-year, while financial services slipped 2 percent. Interestingly, auto remained flat, which is considered something of a victory given the particular troubles affecting that industry. More to come

By David Kaplan