The current financial climate is wreaking havoc across the mobile advertisement sector, with leading officials warning of growth slowing in the next 12 months.
The current financial climate is wreaking havoc across the mobile advertisement sector, with leading officials warning of growth slowing in the next 12 months.
The Advertising Week V conference in Manhattan is underway, but the prospects aren’t looking good. Russell Fradin, president of Adify, a company that helps groups set up online advertising, told businessweek.com: “The first six months of the next year will be slow.”
“Mobile and social networks will be hit,” Fradin says, adding it’s quite hard to prove how advertisements embedded in social networking sites actually work, or if they do at all.
“If a certain kind of spending hasn’t been in your [advertising] budget for three straight years, you’ll likely cut it when things get tougher,” he says. “Anyone who is new will have slow growth.”
CEO of online ad network Video Egg, Matt Sanchez, says growth will slow over the next year, while businesses may even close. “The next 12 months will be tough,” he says.
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