Internet advertising contracts, IDC reports
Worldwide spending on Internet advertising contracted for the second consecutive quarter, by 5 percent to $13.9 billion from $14.7 billion in the same quarter a year ago, reported IDC, a global market intelligence firm headquartered in Framingham.
"In the United States, all major advertising formats saw year-over-year revenue losses, with search ads being least affected, display ads losing 12 percent, and classifieds shrinking 17 percent," IDC said in a press release.
Advertising can be one of the first items that companies cut during a recession.
The release added: "Worst affected were Monster.com with a 31 percent decline, suffering from the terrible condition of the classifieds business in the current downturn, and AOL, hit by both the weakness in display ads as well as internal sales problems."
Monster.com, which has much of its operations in Maynard, has business relationships with many media and newspaper companies, including The New York Times Co., parent of The Boston Globe and Boston.com.
"We think the industry will continue to see losses in the third and fourth quarters, but the growth rates - or the loss rates, if you will - will eventually begin to improve," Karsten Weide, IDC's program director for Digital Media and Entertainment, said in a statement. "However, we also believe the industry may have to wait until mid-2010 until it sees real growth again."