By: Matthew Bailey

US internet advertising revenues fell during the first three months of the year to $5.5 billion. The United States internet advertisement market is worth $10 - 14 billion that only grew by 10.0% or 11.00% in 2008. Figures from the IAB show US online advertising revenues topped $28 billion in 2008.

This news could be especially bad for magazines and newspapers, who most all have turned to the web to make up for the loss of print ad revenue. In past few months, many outlets have shuttered or cut back on their print operations and even have completely ceased all print operations such as The Rocky Mountain News and the Seattle Post-Intelligencer. Online advertising revenue has been shrinking as more companies tighten their marketing budgets to save money during the recession. Traditional big spenders like banks, automobile makers and dealers, department stores and real estate developers have been grappling with major crises. Some of them have even been forced to merge with rival companies or simply close their business.

Those numbers are only for U.S. market and as such do not denote the internet advertising figures in other countries.

European online advertising market grew by 20% in 2008 compared to the previous year, contrary to the situation faced by other media, whose ad-related revenue is dropping, according to figures released by the Interactive Advertising Bureau Europe.

Although all industries have suffered during the recession, a new report finds that the online advertising market saw only a slight decline in the first quarter of this year and it appears that business to business companies plan to moderately increase marketing budgets throughout 2009, but that number will be boosted by 2010.

All of this is another reminder of the widespread pain that was brought on by the longest U.S. recession since World War II.

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Online Marketing Down In First Quarter As Recession Bites Internet was published Wednesday, June 10th, 2009 and is filed under Business.