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Online advertising goes over the cliff edge?

by henrycopeland
Monday, July 21st, 2008

Google’s notice last week that its growth continues to slow got a lot of attention. A couple of other data-points to highlight:

a) ValueClick, a network focused on lead generation and display advertising, announced on Thursday that it no longer expects a strong second half (H2 is usually significantly stronger than H1.) It revised its projections for total ’08 revenues from $730-$745 million to $655-$675 million. Last year’s number was $665 million, so VCLK is saying it won’t grow. More details on their deceleration in online advertising.

b) Q1 ’08 was the first quarter in many in which online advertising shrunk relative to the previous quarter.

c) In other bad news for money-losing Internet companies praying they’ll be acquired before they run out of money, AOL, previously an acquirer, is desparately seeking its own corporate safe haven as its ad sales plateau.


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