Online Advertising Dollars Soaring
November 8th, 2007
Opportunity is knocking for bloggers, podcasters and video podcasters interested in making money online.
The amount of money spent in the US on online advertising will nearly double in the next four years, going from $21.4 billion in 2007 to $42 billion in 2011, according to a report by eMarketer. This represents an increase from a 7.4% share of total media in 2007, to a 13.3% share in 2011. In roughly the same period, online spending will nearly triple, rising from $16.9 billion in 2006 to $42 billion in 2011.
According to David Hallerman, eMarketer Senior Analyst and author of the new report US Advertising Spending, these four milestones mark the change:
“First, US Internet ad spending surpassed $5 billion in Q2 2007, the largest sum recorded in any quarter according to research from the Interactive Advertising Bureau and PricewaterhouseCoopers.”
eMarketer projections suggest that, in Q4 this year, spending will leap past the $6 billion mark.
“Second, while 69 of the 100 largest US advertisers put smaller budget shares into four traditional media—television, radio, newspapers and magazines—in 2006 than the previous year, 70 of the same group put larger shares into Internet advertising.”
Furthermore, 58 did both—decreased their traditional spending share and increased the Internet share.
“Third, even as the credit crunch pulls ad money off the total media table, the Internet looks to be more resistant to economic turmoil,” says Mr. Hallerman. “To put the obvious into figures, online advertising contributes more and more to the total ad spending universe every year.”
That share will be 7.4% this year, approach one in ten dollars next year, and will likely reach at least 13% by the end of 2011.
Finally, Mr. Hallerman notes, “Data from both eMarketer and TNS Media Intelligence indicate that 2007 Internet ad spending will be higher than for radio, as reported in August. That is the first time online ad spending will be greater than for any of the four traditional measured media.”
Advertisers Spending More Per Internet User
The average ad spend per Internet user is also growing. In fact, 2007 marks the first year that marketers will spend more than $100 to reach each person online. And, by 2011, advertisers will be spending nearly $200 per user.
Rate This Post: 
(1 votes, average: 5 out of 5)
