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Online Ads: Down We Go


Growth in online advertising for the first time will shrink to single-digits in 2009, according to eMarketer.

In a report released Tuesday, the research firm predicted that growth in online advertising spending would contract from 11.3 percent in 2008 to 8.9 percent in 2009.

The latest report marks the second time in three months that eMarketer had cut its forecasts. In August, the research house predicted that online ad spending would grow 14.5 percent.

In dollar terms, spending would edge up from $23.6 billion in 2008 to $25.7 billion in 2009, according to the forecast.

After 2009, eMarketer predicted that spending in online advertising would pick up again, rising 10.9 percent in 2010, 12.3 percent in 2011 and 15.6 percent in 2012.

In 2009, two advertising segments are forecast to show declines in spending, with sponsorships dipping 12.9 percent and classifieds falling 5.8 percent.

Video advertising is expected to be the fastest growing segment in 2009 at 44.9 percent, down from 81 percent in 2008.

Search, the largest segment of online advertising is forecast to grow 14.9 percent in 2009 versus 21.4 percent in 2008.