‘Net Will See Nothing But Flat CPMs’, Analyst Also Says Ad Model Has Failed For Social Nets, Online Video

Joe Mandese published an interesting view to a much-awaited report by JP Morgan analyst Imran Khan, in a recent issue of Media Post’s Online Media Daily – online advertising in 2009 was on the table, and the conclusions aren’t too thrilling.

Khan gave a thorough outlook for the Internet industry in his report published earlier this week and predicts that online video and social media will be heavily affected by underperforming advertising. These two emerging platforms are expected to take a long time before solid monetization from advertising can be witnessed.

With the slow growth rate of the online ad spending and troubled economies everywhere, the price of display and search advertising will not be able to offer much to large publishers and networks that are so thirsty for ad dollars.

“We now think 2009 will be a weak year for graphical advertising publishers, as we expect the graphical ad sector to under-perform performance-based advertising in a down economy,” Khan said, explaining that the display ad marketplace would grow about 6% in the U.S., and about 6.7% worldwide in 2009 in his opinion.

Source: Media Post