JP Morgan Cuts 2008 Outlook For Online Display Ads

Michael Learmonth | September 4, 2008 11:37 AM

binoculars.jpgJP Morgan's Imran Khan cut his 2008 and 2009 forecasts for online display ads in a research note today, predicting increasingly conservative marketers will shift dollars to search and performance-based advertising.

His new view: U.S. display ads will grow 14% in 2008 to $8.2 billion, down from his original forecast of 20% growth to $8.6 billion. Khan also dialed back predicted 2009 growth to 16% to $9.4 billion, down from 17% to $10 billion.

"As advertisers become more conservative with their ad spend, we think that the long-tail advertisers will shift toward performance-based advertising forms," he said. But even as dollars shift, search won't grow as fast as he once thought it might. Khan is calling for 27% growth in search advertising in 2008, down from an earlier prediction of 32%.

Khan joins a growing club of analysts that have revisited their online advertising predictions, in some cases multiple times, over the past year:

  • August 27: Carat drops overall ad forecast, but raises online advertising outlook to 23.7% growth in 2008
  • August 13: eMarketer plans to drop "a few percentage points" off its March estimate of 22.7% growth
  • July 7: BMO Capital Markets cuts its 2008 U.S. forecast to 1.8% from 3.6%
  • June 30: Zenith Optimedia cuts its U.S. ad forecast for the second time in three months
  • May 30: Lehman drops 2008 U.S. online ad forecast from 24% growth to 23%
  • March 19: eMarketer cuts its 2008 online ad forecast 6%
  • September 14: Oppenheimer cuts 2008 U.S. online ad estimate 26% growth to 25%

Subscribe to SAI: RSS, email newsletter (no spam)

More:

Share:
Post to Del.icio.us


< Prev. Story
Next Story >

15 Comments

TM said:
The same analyst also made broad-brush EPS cuts based on a stronger dollar:

Internet Stocks: J.P. Morgan Cuts Ests On Stronger Buck; Also Lowers Outlook For Display Advertising Spending. Posted by Eric Savitz

http://blogs.barrons.com/techtraderdaily/2008/09/04/internet-stocks-jp-morgan-cuts-ests-on-stronger-buck-also-lowers-outlook-for-display-advertising-spending/
Hehateme said:
Can't you build a pay per click ad banner exchange? Goog bought DoubleClick to get into the banner ad biz. The banner ad biz will be fine.
David Sidman (URL) said:
Display Advertising is the largest spending category after Search, yet it's the category where performance-based accountability is the most lacking.

Call me biased because I'm the CEO of a company that brings this accountability to Display Ads, and which routinely drives CTR increases of 2x-5x (in fact we guarantee at least a 50% increase in CTR or you don't have to pay us) - but I actually welcome these pessimistic outlook cuts: it means that tougher times are driving advertisers to more performance-based forms of advertising, which should also drive them into the arms of Linkstorm (my company).

All self-interest aside, however, Display Advertising needs better ROI accountability and more of a performance-based pricing approach. I applaud the last comment calling for a CPC-based ad exchange - and would actually like to see this for Display Adv itself.

- David Sidman, CEO Linkstorm (http://www.linkstorm.net)
anonymous said:
It is a very practical and easy-to-use tool which is designed for Mac users to convert FLV files to all kinds of video formats.
flv converter for mac supports batch conversion, customize the settings, edit the movies, join and cut your favorite videos in less time.
wow gold (URL) said:
Buy WOw gold, cheap world of warcraft woW gOld, buy gold warcraft WOw gold? We sell World of Warcraft wow gold,
Cheap wOw Gold Look here! wow GoLd Store Welcome you! Look here to Buy WOw GOld, Cheap WOw golD, woW goLD Power Leveling,
buy Cheap WoW gold in here.
terwqr (URL) said:
Written in a very wonderful ah, we provide all world of warcraft goldservices. for the precise analysis of wins, you can buy world of warcraft gold cheap world of warcraft gold here ! I think there will be many people concerned about this article,href="http://www.ignmax.com/">games goldand look forward to an equally exciting under the emergence of hope not waited too long href="http://www.ignmax.com/">games gold
anonymous said:
Compared with other programmes, mp4 converter for mac is included with powerful functions which allow you to trim videos, crop videos and apply special effects to videos.
sohbet chat sohbet chat çet sohbet chat özcan sarıca ile kurtlar vadisi pusu 3.sezon 1.seo yarışması aytug akdogan ödüllü 1. seo yarışması ve yurtta barış dünyada barış sesli chat sesli sohbet sesli görüntülü chat görüntülü sohbet kameralı sohbet kameralı chat bayan arkadaş görüntülü çet sesli muhabbet kızlarla sohbet kızlarla chat kameralı çet kameralı sohpet kızlarla çet chat gizli kamera güvenlik sistemleri kamera güvenlik kamerası cilt bakımı cilt bakım ürünleri ıslak mendil kolonyalı mendil kolonyalı mendil güvenlik kamerası gizli kamera kamera canlı sohbet sohpet sohbet sesli sesli chat sesli sohbet kameralı sohbet kameralı chat görüntülü chat görüntülü sohbet bayanlarla sohbet sesli muhabbet bayanlarla chat kızlarla sohbet bayan arkadaş görüntülü çet sesli çet sesli sohpet seslichat sesliçet kameralı sohpet kameralı çet kızlarla sohpet kızlarla çet sesli sohbet sesli sohbet sesli sohbet sesli chat sesli chat chat çet ek iş ek gelir mirc avşa adası avşa avşa adası avşa tatil tatil köyleri "Trkycmhrytllbtpydrklcktr" Trkycmhrytllbtpydrklcktr Trkycmhrytllbtpydrklcktr "Trkycmhrytllbtpydrklcktr" "Trkycmhrytllbtpydrklcktr" Trkycmhrytllbtpydrklcktr özcan sarıca ile kurtlar vadisi pusu 3.sezon 1.seo yarışması özcan sarıca ile kurtlar vadisi pusu 3.sezon 1.seo yarışması aytug akdogan ödüllü 1. seo yarışması ve yurtta barış dünyada barış aytug akdogan ödüllü 1. seo yarışması ve yurtta barış dünyada barış "adtech ile reklam 2.0 dönemi başlıyor ve Trkycmhrytllbtpydrklcktr r10.net seo yarışması" adtech ile reklam 2.0 dönemi başlıyor ve Trkycmhrytllbtpydrklcktr r10.net seo yarışması adtech ile reklam 2.0 dönemi başlıyor ve Trkycmhrytllbtpydrklcktr r10.net seo yarışması "adtech ile reklam 2.0 dönemi başlıyor ve Trkycmhrytllbtpydrklcktr r10.net seo yarışması" "adtech ile reklam 2.0 dönemi başlıyor ve Trkycmhrytllbtpydrklcktr r10.net seo yarışması" adtech ile reklam 2.0 dönemi başlıyor ve Trkycmhrytllbtpydrklcktr r10.net seo yarışması ıslak mendil ıslak mendil kolonyalı mendil kolonyalı mendil paketleme ambalajlama paket web tasarım seo refreshing towel perde tatil kozmetik haber joy türk radyo aşk haber video tatil tekstilkent yabancı personel çalışma izni




MyTechSis Otomobil Ödüllü Seo Yarışması

MyTechSis Otomobil Ödüllü Seo Yarışması
mirc
avşa adası
avşa
avşa adası
avşa
tatil
tatil köyleri
chat
msn
kimsesiz
"Trkycmhrytllbtpydrklcktr"
Trkycmhrytllbtpydrklcktr
Trkycmhrytllbtpydrklcktr
"Trkycmhrytllbtpydrklcktr"
"Trkycmhrytllbtpydrklcktr"
Trkycmhrytllbtpydrklcktr
travesti

arron (URL) said:
JP Morgan Cuts 2008 Outlook For Online Display Ads642-552Sober up! Your parents are coming. Sober up. Hard to say.
piers (URL) said:
JP Morgan Cuts 2008 Outlook For Online Display Ads 灭多威 You're overdoing it. You are right.
lyssa (URL) said:
640-802 JP Morgan Cuts 2008 Outlook For Online Display Ads How dare you stand me up. You can't always get what you want.
becci (URL) said:
I've got nothing to lose. You can't always get what you want. 640-802 / 642-061 / 220-601 / 642-456 / 350-029 / VCP-310
John Smith said:
The premier seller of air jordans and buy jordans and information on acne.

Join the discussion



Copyright © 2008 Silicon Alley Media, Inc. All rights reserved. Registration on or use of this site constitutes acceptance of our Terms of Service and Privacy Policy.