Several media companies reported earnings this week and most reports pointed to a weaker-than-expected digital media industry, but relative strength versus traditional media in a pretty gloomy economy. At this point it is clear that no one was immune to what was a steep economic slide during November, accelerating into December and January — and that includes fastest-growing industries, like digital. However, though digital is clearly being impacted by the economy there are some bright spots. Here are the highlights:
– Display’s pain: IAC (NSDQ: IACI) CEO Barry Diller said that display advertising at his company could be down as much as 50 percent in January, a surprisingly dire forecast. AOL (NYSE: TWX) followed that report with numbers suggesting that display would be down 35 to 45 percent in Q1. No one thought display was thriving, but these numbers were worse that many analysts were expecting. Publishers have to aggressively improve their banner offerings to stem the bleeding from display.
More after the jump
– Search’s strength: Following Google