Sometimes when I look back at the growth of online advertising, I’m befuddled and fear the best is behind us.
But, then I read some of the facts and figures and realize the best is yet to come.
From CNN:
Online advertising is once again the brightest spot in an otherwise moribund advertising market, according to first-quarter figures reported by two prominent media research firms.
TNS Media Intelligence said Tuesday that spending on online display advertising - which does not include search - jumped 16.7 percent in the first quarter from a year ago to $2.7 billion. By way of comparison, overall ad spending fell 0.7 percent.
Traditional media categories took it on the chin. Ad spending on television and radio dipped more than 2 percent while newspaper ad spending dropped nearly 5 percent, TNS said.
And on Wednesday, the Interactive Advertising Bureau in conjunction with PricewaterhouseCoopers reported that overall Internet ad spending soared 26 percent in the first quarter to a record $4.9 billion.
Marianne Wolk, an analyst with Susquehanna Financial Group, said search advertising should continue to grow at robust pace and that the healthy gains in display advertising signal a new wave of growth in that segment.
“Display should do better than it has been and the big reason is that we are seeing the advent of video ads online. This could be a very big market,” Wolk said, adding that she expects Google to generate about $300 million in sales from video advertising in 2008. She thinks overall online video ad revenue could hit $1 billion next year.
As more and more viewers, listeners and readers migrate online, advertisers are following suit. As such, traditional media firms News Corp., Walt Disney, CBS, Viacom and Time Warner, which is the parent company of CNNMoney.com, are also all bulking up their presence on the Internet.
In addition, companies ranging from online marketing firms like aQuantive and 24/7 Real Media to Internet content companies Last.fm, Feedburner and Photobucket have all been scooped up by large publicly traded firms in what has become a dot.com merger feeding frenzy in the past month.
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