Online advertising is a no-brainer for a global slowdown, right? Yeah, but not as much as it used to be. PricewaterhouseCoopers and the Interactive Advertising Bureau (IAB) last week reported that third-quarter revenue from digital ads rose 11% year over year, but just 2% sequentially.
I know how that sounds to most Fools; sequential growth can be a red herring for the long-term investor. Here, it's important because it means ad buyers are at least tapping the brakes. Sequential gains were a reoccurring tailwind blowing from Google's (Nasdaq: GOOG ) Silicon Valley headquarters.
How bad will it get? "A weakening economy will continue to be a challenge to all forms of advertising-supported media," David Silverman, a partner at PricewaterhouseCoopers LLP, said in a statement. "However, the Internet should be better poised to withstand the storm, given its ability to combine performance-based advertising along with broad-based branding."
Or at least, that's how it seems. An IAB executive I spoke with last week couldn't say much, other than what's in the group's press release. Nor could she offer context for what digital advertising is working, and what isn't.
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