JP Morgan: Internet Revs Slowing, CPMs Up

JPMorgan Internet axe Imran Khan releases a good news/bad news advertising forecast for 2008: Revenue growth will slow to 21.2%, down from 25.6% in 2007. But Khan says advertising rates themselves will increase due to a “tighter” supply of advertising inventory from major offline media outlets; and “better monetization techniques” from online publishers,” MediaPost reports.

A decline in overall Internet ad growth wouldn’t be shocking this far along in the second boom, but we assume that Khan is not factoring in an economy-wide collapse triggered by housing woes. As we’ve mentioned many times before, we are worried about such an event, which would make projections like Khan’s appear wildly optimistic in retrospect. And again, we’re happy to be wrong.

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