The Dealer Impact Blog

eMarketer: online advertising skyrockets

From Digital Dealer
Nov 15, 2007
Volume 2, issue 46

eMarketer foresees U.S. online advertising will more than double as a percentage of total media, rising from only a six percent share of total media in 2006, to a little more than a 12 percent share in 2010. In approximately the same period, online spending will close to triple, rising from $16.9 billion in 2006 to $42 billion in 2011.

According to David Hallerman, a senior analyst at eMarketer, the three milestones which marked this change include:

“First, U.S. 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,” says Hallerman. eMarketer projections suggest that in Q4 of this year spending will leap past the $6 billion mark.

“Second, while 69 of the 100 largest U.S. 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,” continues Hallerman. Furthermore, 58 of those U.S. advertisers both decreased their traditional spending share and increased their 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,” asserts Hallerman. “To put the obvious into figures, online advertising contributes more and more to the total ad spending universe every year.” That share will show 7.4 percent this year, approach one in 10 dollars next year, and will probably reach at least 13 percent by the end of 2011.

“Data from both eMarketer and TNS Media Intelligence indicate that 2007 Internet ad spending will be higher than for radio, as reported in August,” declares Hallerman. “That is the first time online ad spending will be greater than for any of the four traditional measured media.” 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.

http://www.imakenews.com/digital1/e_article000951885.cfm?x=bbD1BRj,b4TSprpk