Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Dave who wrote (5601)	7/5/2001 10:38:33 AM
From: MeDroogies	of 74559

Just an FYI about my business: "In the short term, Kagan Media Money does not project a recovery of the ad market until 2002--and as a result, online properties relying on marketing dollars for their bread and butter will likely continue to struggle. In 2000, Kagan Media Money had online gross ad billings totaled $8.5 billion, a whopping 80% increase on 1999's $4.2 billion. For full-year 2001, Kagan expect revenue to fall at least 18% to about $6.9 billion. Even by 2002, revenue from online ads may not rebound to 2000 totals. Kagan projects 2002 ad revenue could hit $7.9 billion --still 7% less than for 2000. " Interestingly, Kagan is only counting revenue from advertising firms. Most online revenues come direct from the client, and not through the agency, so while revenues are down, they are not as low as Kagan's indicate. Kagan also estimates next year (again, agencies rarely know what they will have, and much money still comes from the clients directly anyway) will be up close to 10%. Since clients will spend more if they don't pay agency fees, this estimate can be considered low.

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