Crenk Recession Watch

Undoubtedly, the recession wasn’t really hitting the internet as hard as what it was other industries. Sure we has a bit of trouble over at Microsoft but that’s because they are also a trading company in the real world. What I mean to say is that the online world was fighting off the worst of it.

In fact, companies such as eBay and Amazon actually didn’t do so bad. People began to sell their stuff when they needed the cash and others bought them because they didn’t have too much cash to splash. It was all making perfect sense until the internet could take no more as real companies started to turn their back on it.

Advertising is plummeting. A new report states that advertising on a worldwide scale is down by five percent. In America, the figure is even bigger at 7% worth an estimated 0.4 Billion dollars. Companies who usually do quite well from advertising such as Monster reported that they lost 31% compared to last year.

Wouldn’t you know it; internet giant Google is the only ad publisher to report a growth, however even this is in single digits.

Now that advertising is failing the next sector to be hit will be entertainment. Big companies that have real world trading have more of a chance of survival but for online magazines and games where they often depend on advertising alone to keep the ship afloat – there may be trouble ahead indeed.

The IDC, who released the report did have some good news however.

“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, program director for digital media and entertainment at IDC, said in a statement. “However, we also believe the industry may have to wait until mid-2010 until it sees real growth again.”

Tags: Advertising crenk internet recession wtch