Internet Advertising Explosion

Josh sends this one to think about:

http://news.directtrafficmedia.co.uk/Internet_advertising_grows_at_an_astounding_rate_18301227.html

Internet advertising grows at an 'astounding' rate

A new report reveals that online marketing is growing at an "astounding" rate.

According to figures from the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers, online advertising spend in the UK increased by a massive 41.3 per cent year-on-year in the first half of this year, to £1.3billion.

The study also predicts that expenditure on online advertising could hit £2.75 billion by the end of 2007, suggesting that anyone who is not already engaged in internet marketing should get their skates on.

Online has now overtaken the size of the direct mail sector, with online classified ads growing by a particularly sharp 72 per cent to £277.7 million.

Internet display advertising, including banners and skyscraper ads, was up by 33 percent to £287 million, and paid-for search advertising was up by 44per cent to £762.3 million.

Paid-for search represents 57.1 per cent of the online total, with growth attributed to the fact that at least half of all online transactions begin with a search. Little wonder, then, that companies such as Google are raking in such massive profits.

The IAB has identified four key drivers for this phenomenal growth - the rapid growth of broadband internet connections; the migration of consumers to the online channel; the boom in social networking websites; and the increasing sophistication of measurement and web analytics.

Nicki Lynas of PricewaterhouseCoopers said: "The latest results for the first half of 2007 show that the UK's internet advertising industry continues to strengthen.

"The growth levels seen by the companies in the survey prove that advertisers are increasing their spend online at a rate that shows no signs of levelling out."

Comments

[rhart]

Unfortunately, Google Adsense for Web Publishers has gone down over the past two years. More clicks, less revenue.

[Danno]

Hi rhart,

Google is not anyones friend...certanly not their publishers.

Check the story two down from this post entitled: Is Google Broken?

____

This is going to be a continuing tread for years and years to come...for 'online advertising'

But,

It should be everyone's job thats involved in the domain industry, to show these people that there is a better way... generic keyword .com domains.

If used properly...they offer the advertiser a lot more bang for their advertising buck, then a lot of the ways advertising is done on the internet...(Contextual ads...to name one)

Best,
Dan

[Edwin]

Interesting. According to http://www.iab.net/resources/adrevenue/pdf/IAB_PwC%202007Q2.pdf the US online advertising market went up 27% in the first half (the same period the UK advertising market went up 41.3%).

With the weak dollar/strong pound, the UK ad market was worth US$2.65 billion in the first half, or approximately 27% of the US market. And that's for a market that's just 1/5th of the US population. In other words, the online ad spend per capita is significantly higher in the UK than in the US ($33.20 per person in the USA, vs $43.60 in the UK, using estimates for both populations from July 2007)

No wonder the .co.uk market is strengthening so strongly!

[David Wrixon]

Edwin,

Much of the difference can probably be attributed to the fact that we are often ripped off for twice as much for products from the US, and that includes software downloads.