Feeds

Internet advertising shoots past estimates

US spend reaches $7.9bn

Build a business case: developing custom apps

Predictions are rarely low in the high technology business, but consistently the targets set for internet advertising are over achieved by reality. This week the Interactive Advertising Bureau and PricewaterhouseCoopers released their half year figures for 2006, and it totalled up to a $7.9bn spend in the US.

At the end of last year these same two forecast a $15bn market for US advertising and last quarter gave a heads up that it had already reached $3.9bn, growing at 38 per cent, rather than the 30 per cent plus that was originally forecast.

This quarter took it beyond $4bn up 36 per cent and the likely result for the year end is going to be closer to $16.5bn, perhaps higher.

"The latest results reaffirm the internet's growing importance for marketers to integrate online advertising into their overall media plans," said David Silverman, Partner, Entertainment and Media Practice, PricewaterhouseCoopers.

"While search advertising remains the largest format in terms of revenues, we expect to see new formats like video ads to continue to emerge as advertisers seek to leverage the branding opportunities afforded by the growing installed base of broadband users."

The implication that video advertising has yet to make a dent in these figures is all important. Video advertising is rising exponentially, but is still a fraction of the internet advertising that's already there. Once it begins to make up a significant proportion of advertising, it's likely that the internet advertising spend will increase further, rather than slow down.

Copyright © 2006, Faultline

Faultline is published by Rethink Research, a London-based publishing and consulting firm. This weekly newsletter is an assessment of the impact of the week's events in the world of digital media. Faultline is where media meets technology. Subscription details here.

The essential guide to IT transformation

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?