Earnings Reports Reveal Rebound In U.S. Advertising
Earnings Reports Reveal Rebound In U.S. AdvertisingAug 10 2010 - Business - Farhad Divecha
Reports of the quarterly earnings of various companies during the second quarter of 2010 have recently been published. These reports indicate an overall recovery in ad-generated revenue in most of the Internet, media and advertising companies.
Google is reported to have said that during the second quarter of the year, marketers were more likely to agree to pay a higher charge for their ads to appear online. This was probably a result of the fact that users were more likely to click on the ads.
The largest newspaper publisher in the U.S. Gannett Co. has also reported a positive trend in the print media after a gap of 31/2 years. The decline of print ads has dropped to 6% during this period.
General Electric Co. has also reported a recovery in the local ad market and the percentage of growth is quite substantial.
The first two months of the quarter were good for Yahoo!, but in the month of June they noticed a sudden drop in the ad spend of several of their advertisers. Though the total search advertising revenue fell by 8%, the display advertising sector has shown a growth of 19% compared to the same period last year.
The Omnicom Group Inc. has shown a 4.2% growth of quarterly net income. There overall revenue grew by 5.9% and in the U.S. alone, it grew by 7.4%.
The New York Times has reported a quarterly growth in revenue after a gap of 3 years. Digital ad sales grew by 21% but the print media saw a drop of 6% in advertising generated revenue.
Online ad revenue on Bing has increased Microsoft’s revenue by 19%. Fox Cable Network reported a growth in their advertising revenue. Time Warner Inc. also saw a surge in growth due in part to increased ad revenue.