Sunday, April 11, 2010

20 years old Internet advertising
Garners half of 60 years old television
Still using 20th Century publicity thinking?

As reported in post below, Internet advertising revenue for 2008 was $23-billion dollars. Where was most of that spent? Search engine advertising!

PriceWaterhouseCoopers reports Search (engine advertising) has remained the leading format since 2004, and has had strong sequential growth over this period. Search is followed by Display Banners and Classifieds/Directories in percentage share of Internet advertising.

Internet Advertising revenues continue to far outpace the growth of Cable Television and Broadcast Television during each of their first 14 years.

According to Television Bureau of Advertising, television revenue for 2007 totaled $46.5-billion, about double what the Internet did. When you look at it, that is phenomenal growth for the Internet; comparing something 20 years old to a media 60 years old.

The PWC report stated, Online advertising continues to remain concentrated with the ten leading ad-selling companies, which accounted for 72 percent of total revenues in the fourth quarter of 2008, up slightly from the 69 percent reported for the fourth quarter of 2007. PWC never mentioned who those
ten leading ad-selling companies were (Google, Yahoo?).

More from the report:
* Search revenues accounted for 46 percent of 2008 Q4 revenues, up from the 42 percent reported for the same period in 2007. Search revenues totaled $2.8 billion in the fourth quarter of 2008, up 13 percent from the fourth quarter of 2007, when Search revenues totaled $2.5 billion.

* Display-related advertising accounted for $2.0 billion or 33 percent of total revenues during the fourth quarter of 2008, down nearly 4.3 percent from the $2.1 billion (35 percent of total) reported in the fourth quarter of 2007. Display-related advertising includes Display Banner Ads (21% of 2008 Q4 revenues or $1.3 billion), Rich Media (7% or $434 million), Digital Video (3% or $207 million), and Sponsorship (1% or $87 million).

* Classifieds revenues totaled $769 million or 13 percent of 2008 fourth-quarter revenues, down 8 percent from the $832 million (14 percent of total) reported in the fourth quarter of 2007.

* Lead Generation revenues accounted for 7 percent of the 2008 fourth-quarter revenues or $433 million, up 4 percent from the $416 million (7 percent) reported in the fourth quarter of 2007.

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