An industry survey conducted by PricewaterhouseCoopers and sponsored by the Interactive Advertising Bureau (IAB) just released today shows that US internet advertising revenue is strong, growing and fairly resilient to the economic slowdown.
US internet advertising revenues were $23.4 billion for the entire year of 2008, with $11.5 billion coming in the first half and $11.9 in the second half. Full year 2008 revenue was an astonishing 10.6% higher than full year 2007 of $21.2 B, keeping in mind that traditional advertising may have shrunk in this period. Q4-2008 revenue of $6.1 B sequentially increased 4.5% from Q3-2008 and 2.6% from Q4-2007. Note that internet advertising was only around $2 billion in 1998, and has grown twelve-fold in just ten years!
This is what Randall Rothenberg, President and CEO, IAB had to say about this significant shift, “We are seeing an ongoing secular shift from traditional to online media as marketers recognize that ad dollars invested in interactive media are effective at influencing consumers and delivering measurable results. In this uncertain economy, where marketers know they need to do more with less, interactive advertising provides the tools for them to build deep, engaging relationships with consumers—the experience marketers gain from this will deliver dividends especially after the economy turns around.”
In other words, internet advertising is working for advertisers! They can get customers, immediate results and good ROI, compared to traditional advertising, where reach, measurement and effect are much more diffuse.
What’s working within internet advertising?
Search continues to be the leader at 46% of total spend, banners follow at 21%, classifieds at 13%, lead generation at 7% and rich media at 7% of Q4-2008 revenues.
However, online advertising is really concentrated. The ten top ad-selling companies, accounted for 72% of Q4-2008 revenues, companies ranked 11-25 accounted for 11% and companies ranked 26-50 accounted for 8%.
And some additional good news for Google and Yahoo: Search revenues were $2.8 B, 46% of total Q4-2008 revenues, up from $2.5 B or 42% of total revenues in Q4-2007. Google’s Q4-2008 US revenue was $3.8 B of which around half was US revenue, so $1.9 B. Thus Google’s share of total US search revenue comes to $1.9B/$2.8B or 68% which generally corresponds to its percentage share of the US search market.
By industry, retail advertisers were 22% of 2008 revenues, followed by Financial Services at 13%, automotive advertisers at 12%, computing advertisers at 12%, telecom companies at 9% and Media accounted for 5%.
Another significant trend seen in this study that Performance Based advertising is steadily gaining over CPM or Impression Based advertising.
This study has critical implications for advertisers, publishers, marketers, internet companies, consumers and investors. If internet advertising continues to grow at this rate and steal share from traditional advertising, the net may quite be the place to be in the future!
The full study is here http://ow.ly/1IEE
Monday, March 30, 2009
Subscribe to:
Post Comments (Atom)
Posts
1 comments:
The advent of the internet and its fast proliferation into the lives of people or the domestic households all over the world can be indeed considered as one of the most important developments of the recent times. One must realize the fact that this particular development is extremely significant in more than one ways and has far reaching consequences in different areas. In other words, internet has made it possible that now an individual can have access to any kind of facts, figures, data or information along with the fact that is an extremely fast mass communication medium.
It goes without saying that the above discussion certainly makes the internet appear highly lucrative and full of potential. Now, one of the first industries or sectors which have tapped or at least are presently tapping this potential is advertising. The fact that internet in a single instant can reach out to an unprecedented and unmatched amount of people makes it an ideal advertising vehicle for any kind of products or services. Moreover, it remains as a fact that both the amount of content as well as its reach is certainly getting expanded with each passing day thus making online advertising one of the most effective marketing procedures under the sky. Just the sheer scale of things has made internet the ultimate advertising destination for everyone starting from large multinationals to the individual who is running a little home based business. According to almost all of the experts of the trade, internet is definitely the present and the future of business, advertising and communications.
Post a Comment