Online Advertising Up 15.2% in First Half of 2008
Friday October 10, 2008
IAB (Interactive Advertising Bureau) released their Internet Advertising Report for the first half of 2008 this week. It shows online advertising spending increased 15.2% in the first half of 2008 versus the same period in 2007.
Couple of interesting charts from IAB (dollar figures are in millions):
1. Advertising Formats: search and video growing at the expense of classifieds and sponsorships.
|
|
FH 2007 |
FH 2008 |
|
Search |
41% ($4,097) |
44% ($5,064) |
|
Display Related: |
32% ($3,198) |
33% ($3,799) |
|
-Banner Ads |
21% ($2,099) |
21% ($2,418) |
|
-Rich Media |
7% ($699) |
7% ($806) |
|
-Digital Video |
1% ($100) |
3% ($345) |
|
-Sponsorship |
3% ($300) |
2% ($230) |
|
Classifieds |
17% ($1,699) |
14% ($1,611) |
|
Referrals/Lead Generation |
8% ($799) |
7% ($806) |
|
E-mail |
2% ($200) |
2% ($230) |
2. Pricing Models: performance deals growing at CPM's expense. That makes sense as advertisers demand more accountability for their ad budgets. More and more advertisers want to pay for action or clicks instead of just impressions.
|
|
FH 2007 |
FH 2008 |
|
Performance Deals |
50%($4997) |
52%($6,007) |
|
CPM |
45%($4497) |
44%($5,026)) |
|
Hybrid |
5%($499) |
4% ($477) |
Here's a copy of the full IAB Internet Advertising Report 2008 Q2 (pdf).
Comments
On-Line Business Vocabulary
On-Line Marketing
Important things to know before your Spend!
Vocabulary
Keywords - those words or phrases that most accurately describe your business, service or product.
Search Engines - The equivalent of a directory assistance for a business or consumer. Where you place in the search engine directory is dependent upon your keywords and the cost of each keyword.
On-Line Marketing of Keywords in Search Engines - When using the Internet for on-line marketing the desire is to be one of the first businesses displayed and the most visible across multiple searches by users of the Internet. As Nielsen and Arbitron charge for data passive data (data solicited), search engines charge for access to active data (data received). So having a simple business plan can help you in enhancing your chance of most effective costs for on-line marketing.
Reach and Frequency - an advertising or market theory of reaching the largest target audience and the frequency of successful reach to that audience. A good example of new technology using the basic reach and frequency is MobilTRAK.com. MobilTRAK is able to provide business and government with passive verification of in-car listenership. As a car drives by, the signal of the radio station listened to is collected so advertisers can better pinpoint advertisting.
Applying reach and frequency to the Internet, a better business plan includes those keywords
which reach your target audience as frequently as possible.
E-Commerce & Global Portals - E-Commerce is electronic commerce; buying and selling on-line via a payment system. Global Portals are relatively new and designed to create specific channels on the Internet where associated businesses can conduct as much as on-line commerce as opposed to complicated letters of credit and other complex commerce means.
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