The worldwide online adverting market dropped by five percent in Q2 of 2009 when compared to corresponding period in 2008, according to market research company IDC. The total online ad spending in Q2 of 2009 is $13.9 billion dropped from $14.7 billion in Q2 of 2008. Among the online advertising categories such as online ads, display ads and classifieds, search ads are the least affected.

The vital region for the global market was US online advertising market that dropped 7 percent during Q2 year over year. The US online ad market is now worth $6.2 billion in Q2 of 2009, while it was $6.6 billion in the corresponding period last year. The only region that remained positive globally was Asia/Pacific and Japan with slight gains.

The effect of economic crisis on various online advertising like social media, mobile ads and display ads are as follows:
• Advertisers are shifting their ad budgets from digital media to most proven traditional Medias such as television ads, newspaper ads.
• The search advertising became a dominant player in the entire Internet advertising. It captured one-third of all annual online ad spending worldwide despite global economic downturn.
• Display ads will be the next largest tool in online advertising. It is expected to capture 20 percent of all annual ads spending worldwide by 2011, followed by Classified ads with 19 percent.

The factors that support online ad spending:
• Improved ad budgets
• High cost for advertising in other medias
• More companies are including Internet advertising as a part of their total advertising campaign
• Ad budgets tilt from other medias to Internet

Mobile Internet ad spending will increase $2 billion by 2014 from $500 million in 2009, according to Juniper Research. The main reason behind this is, the growth driven by new markets such as China and India where fixed line Internet access is less. The growing mobile Internet access across the globe irrespective of the economies is likely to fuel the further growth of online ad spending.

However, Internet advertising received only a small portion of marketing budgets in the current season, it is expected to improve in the coming years. In a similar report, GroupM predicts that if the worldwide ad spending reaches to $58.17 billion by the end of 2009, online advertising will be 13.2 percent of total ad spending and it will further increase up to 14.6 percent in 2010.

Because of the global economic crisis, marketers decreased ad budgets to advertise on new social networking. The impact of economic crisis on online advertising industry specifically and the advertising industry overall is expected to continue in 2010 as well. In this period, the traditional media advertising is most likely to be affected than online advertising.