Ad $$$ Continue to Migrate Online
WSJ reports on Internet Advertising today:
Online-advertising revenue was a record $5.8 billion in the first half of 2005 as search-based ads continue to drive the industry’s growth, according to a trade group.
The New York-based Interactive Advertising Bureau said revenue in the six months ended June 30 increased 26% from a year earlier. Second-quarter revenue totaled $2.99 billion, up 26% from $2.37 billion in the same period in 2004.
The IAB did not release the full study, which PricewaterhouseCoopers conducted on its behalf. Although the report was not yet finished, the IAB said it wanted to release numbers during a marketing conference that opened Monday.
Internet-based advertising remains a small portion of the total U.S. advertising market, which was $71 billion during the first half of 2005, according to research firm TNS Media Intelligence.
Search ads made up 40% of the online ad revenue, the same share as the first half of 2004. But revenue totals for search jumped 27% to $2.3 billion, from $1.8 billion. Display ads made up 20% and classifieds 18%.
“The consistent growth in overall revenues shows marketers may be shifting more of their total advertising budgets to online,” David Silverman, a partner with PricewaterhouseCoopers, said in a prepared statement. “This is a natural development as research shows more consumers are spending a larger percentage of their media time online, while the flow of advertising dollars follows.”
This is both expected and obvious, although the numbers are nevertheless reassuring. This also explains why we suddenly see a resurge in Consumer Internet plays once again.
