Money Matters - Simplified

Internet ad business is floundering

New York -- Revenue from U.S. Internet advertising fell 5.3 percent in the first six months of 2009, a private study released Monday showed.

The Interactive Advertising Bureau and accounting firm PricewaterhouseCoooper LLP said overall, Internet advertising fell to $10.9 billion, but search-advertising rose slightly to $5.1 billion, MarketWatch reported Monday.

"We are in one of the most difficult economic slumps in decades. (However), as the economy improves, we're confident that brands will devote an even greater share of their budgets to reaching consumers as they make interactive media a larger part of their lives," said Interactive Advertising Bureau Chief Executive Randall Rothenberg in a statement.

Yahoo!, one of the industry's giants, is expected to post $1.2 billion in net revenue in the third quarter. Google Inc. is expected to earn $4.2 billion in the quarter, MarketWatch said.

Copyright 2009 by United Press International.

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