Internet Ads Boom, But TV and Papers Lag

Mike Ramill Erin Keller Elizabeth Jahns

What is it?

• Email • Side Bars • Search Engines • Banners • Pop-Ups • Pop-In Layers • Websites

Online Advertising

• Growing in popularity • Allows businesses to reach more people • Cost effective • More convient to customers • Increasing with new technologies

Growing in Popularity

• Overall ad spending in the U.S. rose 4.1% last year to $149.6 billion • Internet advertising spending grew 17.3% to $9.8 billion last year • Rose by 34% to $16.8 billion if you include paid search advertising • 2005 held prior record at 30% growth ($12.5 billion) • Highest Internet Advertising ever recorded

Internet Advertising Guidelines

Interactive Advertising Bureau (IBA) • Establish guidelines for member organizations that set minimum acceptable standards for protecting the privacy of online users. • IBA Pop-Up Guidelines • IBA Email Guidelines • IBA AD guidelines

The TV Marketplace

• Network TV • Ad spending increased only 2.5% totaling $22.9 billion • Cable Network • Ad spending increased only 3.4% totaling $16.7 billion • Ads on syndicated shows • Remained virtually flat at $4.2 billion • Spot TV ads • Climbed 10.4% to $17.2 billion • Spanish-language TV saw a boost from World Cup advertising, up 13.9% to $4.3 billion this past year

Other Advertising

• Magazine Marketplace • Spending rose only 3.8% to $29.8 billion • Radio Advertising • Grew at an even slower pace at 0.3% to $11.1 billion • Newspaper Advertising • Fell 2.4% to $28 billion • Local print editions took the largest hit, down 3.3% to $24.1 billion

Companies Advertising Less

• Half of advertisers cut their budgets • Spending among top 10 advertisers fell by 2.3% • General Motors • Down 23.7 % • Daimler Chrysler • Down 16.5% • Johnson and Johnson • Down 18.3%

Outlook

• Spending on traditional advertising is going to decrease

Resources

http://www.forbes.com/digitalentertainment/2007/03/13/internet-advertising-newspaper-tech media-cx_lr_0313ads.html

http://www.internetnews.com/stats/article.php/3664366