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Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

December 2, 2008 at 7:04 AM

Online ad outlook, Yahoo price target trimmed

Jeffries analyst Youssef Squali trimmed his price target on Yahoo to $20 from $23 a share, citing lower online ad spending growth. Via AP.

eMarketer forecast 12-08.JPG eMarketer on Monday revised its online advertising outlook, reducing its forecast for the current year from $24.9 billion in the U.S. to $23.6 billion. The market research firm noted that’s still 11.3 percent growth over 2007. By category, eMarketer predicts online display advertising — Yahoo’s bread and butter — will see significant slowing in growth. The category, underpinned by struggling retail and automotive advertisers, was forecast in August to grow 16.9 percent this year. eMarketer has trimmed that forecast to 3.9 percent.

Paid Internet search advertising will also see growth slow, but it is forecast to outpace the broader online advertising market. Search advertising is expected to grow 21.4 percent this year and 14.9 percent next year.

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