Online Advertising Continues to Surge Revenues forecasted to top $12 billion for 2005
Online Advertising Continues to Surge
By Margaret Donahue-Rippetue
During 2005, online advertising revenue may cross a record $12 billion, according to the Interactive Advertising Bureau and PricewaterhouseCoopers’ New Media Group. In the third quarter, according to DM News (Nov. 22, 2005), revenue jumped 33.9 percent, the highest quarter ever reported (the first and second quarters of 2005 set a record at 5.8 billion, a 26 percent increase over the same period in 2004, according to DM News, October 3, 2005. This is pivotal, as these numbers include the month of August, typically a slow period for advertising.
More than ever, Marketers are using the web for online advertising due to the value-per-dollar that this medium offers. Recent numbers reflect that display ads represent 20% of the business, classifieds gained 1% over 2004 with 18% of the share, and rich media ads took 8% of the year-to-date’s online advertising revenue.
Evidently, online marketing is working quite well. Forecasts for 2006 by IAB and PwC continue to anticipate growth in the online arena. Industry giants are already jumping into the arena-PepsiCo, is already allocating nearly 10 percent of its ad budget to be spent online; and this summer, the Ford Motor Co. announced plans to spend 15% of its $1 billion budget online, demonstrating clearly that marketing in this manner is certainly a successful method that will only continue to increase in usage by marketers.