IDG News Service - The economic downturn continues to weigh on online ad spending. The worldwide market dropped 5% during the second quarter compared to the same time period last year, according to market research company IDC.
During the second quarter last year, companies spent $14.7 billion on online search ads, display ads and classifieds. This year that sum dropped to $13.9 billion, IDC said. The only region where sales didn't contract was Asia/Pacific and Japan, which saw slight gains, the research company said.
The industry will continue to see further drops during the third and fourth quarter and will likely have to wait until mid-2010 until it sees growth again, according to IDC.
During the second quarter, online ad spending in the U.S dropped 7% year over year. The U.S. market is now worth $6.2 billion, compared to $6.6 billion last year.
Classified advertising was fell dramatically, contracting by 17%, and job search site Monster.com was hit hardest the major publishers, experiencing a 31% decline. Search ads were the least affected, which helped Google Inc. post a small gain, IDC said.
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