Internet Marketing Course BLOG

Online Advertising Remains Vibrant Despite Tough Economic Times – $5.8 Billion for Q1 ’08, Second Highest Quarter Ever

Interactive Advertising Bureau
June 17, 2008

Dave’s Comments (Internet Marketing Course Blog): I know I’m repeating myself on this subject, but the beat goes on! The emergence of the Internet/Web as the most active and fastest growing segment of the entire US advertising industry continues to amaze even industry pundits. Here are the latest online ad revenue numbers from the IAB, along with a great graph showing how these numbers have grown over the last 10 years.

“The Interactive Advertising Bureau (IAB) today announced that Internet advertising revenues reached $5.8 billion for the first quarter of 2008. The 2008 first quarter revenues are an 18.2 percent increase over the same period in 2007, and represent the second highest quarter ever recorded, after Q4 2007’s $5.9 billion.

‘We continue to experience significant growth and vitality in interactive marketing, media and advertising,’ said Randall Rothenberg, president and CEO of the IAB. ‘We expect growth to continue, as consumers spend more and more time online, and marketers find more – and more innovative – ways to reach them through digital media.’

‘The fundamentals of interactive advertising spend continues to be positive and I would expect to see continued growth in the future.’ said David Silverman, partner, Assurance, PricewaterhouseCoopers ‘The cyclical fourth quarter to first quarter drop in traditional media advertising spend, combined with an overall economic slowdown, resulted in a not so unexpected first quarter slowdown in the growth of online advertising.’”

Read the full article by clicking on the following link:

Q1 ’08 Internet Ad Revenues Up 18.2% Year-Over-Year

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By David Hallerman, Senior Analyst
eMarketer
June 2, 2008

Dave’s Comments (Internet Marketing Course Blog): An interesting subject, but what I found even more interesting in this eMarketer article is the method this analyst used to monetize the value in advertising revenue of unique visitors to major online advertising Web sites!

“The question of whether social network sites will become major centers for online marketing is one that my colleague Debra Aho Williamson and I have debated for the past couple of years—she on the yea side, and me more on the nay side.

In the spirit of that debate, I set out to write a counterpoint to her recent piece, “Will MySpace Revenues Add Up?”—but, after some digging, my point of view has changed.

That change spins on two factors: money and people. That is, do a site’s ad revenues match its traffic? The relationship of traffic to revenues is not an exact one, since it fails to factor in elements such as the amount of time people spend on a site. However, matching eyeballs to dollars builds a rough estimate of how well any Web site monetizes its audience.

To research this, I gathered eMarketer’s projections for 2008 US ad revenues at five sites—MySpace, Facebook, Google, Yahoo! and MSN. Then, using Nielsen Online’s April 2008 data for US unique visitors to those sites and extrapolating that data across the whole year, I created a rough placeholder for unique annual visitors.

Simple math yielded the following estimates for US average online advertising revenues per unique visitor in 2008:

* Google: $65.55
* Yahoo!: $31.25
* Microsoft (MSN): $17.74
* MySpace: $12.85
* Facebook: $11.79

It is not surprising that Google makes far more from each visitor than both its portal competitors and the social networking sites. What is notable, however, is that revenues per visitor for the two largest social networks are starting to edge up on MSN’s takings.”

Read the entire article at:

Will Social Networks Remain Low-Ad Districts?

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From: Directmag.com
June 1, 2008

Dave’s Comments (Internet Marketing Course Blog): Internet Advertising is on an incredible roll! And the only medium that is predicted to give “traditional” online advertising stiff competition is another form of online advertising!

“Internet advertising in the U.S. will continue to grow fast even as the current economic woes will lead to a contraction in advertising spending overall, according to a study from market research firm IDC.

Overall Internet advertising revenue will double from $25.5 billion in 2007 to $51.1 billion in 2012, according to the report.

The Internet will go from the fifth-ranked medium to the second in five years, making it bigger than newspapers, cable TV and broadcast TV. And it will be second only to other forms of direct marketing, IDC predicted.”

Read the entire article at:

Web Advertising to Grow Despite Economy

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From: eMarketer
APRIL 17, 2008

“Show me the money!”

Dave’s Comments (Internet Marketing Course Blog): Content is and remains king when it comes to capturing eyeballs on the Web, but is there a logical way to monetize the user-generated portion of it? An interesting question, given that a good deal of this user-generated “content” is, according to one observer, “crap”! You can read more about this phenomenon by clicking on the following link, Web 2.0 Internet Marketing – Internet Marketing Course.

“The user-generated content movement is no longer a fad.

In the US, eMarketer projects that the number of user-generated content creators will rise from 77 million in 2007 to 108 million in 2012.

The content is being read, seen and heard, too.

The number of consumers of user-generated content will increase from 94 million in 2007 to 130 million in 2012.”

Read the entire article at:

Can User-Generated Content Generate Revenue?

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From: eMarketer
MARCH 31, 2008

Dave’s Comments (Internet Marketing Course Blog): Having lived thru (and been laid off in!) the “Dot Com” bubble burst of 2001, it is absolutely amazing to me to see that one of THE most resilient sectors of U.S. advertising in 2008 (and beyond) is forecast to be Internet (online) advertising! Even for those of us who saw online advertising as an incredible opportunity at the beginning of this century, I think we’re all a bit amazed by the strength that segment is exhibiting in the current economic climate.

“When the going gets tough…

Sub-prime mortgage meltdowns. Floundering credit markets. Burst housing bubbles. Trillions wasted in war. Gold hitting $1,000. Tumbling stock markets. Falling payrolls. Oil at record highs. The dollar at record lows.

Is it any wonder that—even in a year of the Olympics and a presidential election—US advertising is struggling?

Almost all US advertising, anyway.

In the midst of the doldrums, like the Energizer Bunny, Internet advertising is still going strong.

‘Even if its rate of growth is declining slightly,’ says David Hallerman, eMarketer Senior Analyst and author of the new report, US Online Advertising: Resilient in a Rough Economy. ‘US online advertising is proving to be far more robust than other media channels.’

eMarketer predicts that this year online advertising will grow to nearly $25.9 billion and account for 8.8% of total US ad spending.”

Read the entire article at:

Online Heads for 10% of Total US Ad Spend

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