Online ads: record earnings
p2pnet.net news:- We’ve often thought it’d be interesting to see a research project started to analyse exactly how effective online advertising is, and where the numbers touting its efficacy come from.
Google has made its fortune peddling space to people who want to get product/services in front of potential customers, Yahoo couldn’t do without ads and Microsoft has just spent an unprecedented $6 billion to buy a single advertising company.
Obviously, manufacturers and suppliers are firmly convinced advertising dollars are well spent, and that thought is bolstered by the news that online advertising revenue in the US set a new record in 2006, growing 35% to reach almost $17 billion, says InformationWeek.
Quoting a report from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC), “Revenue for the fourth quarter of the year, $4.8 billion, also set a record and similarly showed a 35% increase compared to the fourth quarter of 2005,” says the story.
It goes on:
“Search advertising accounted for 40% of 2006 U.S. ad revenue ($6.76 billion), a slight decline from 41% in 2005. Display ads, classified ads, and referral ads accounted for 32%, 18%, and 8%, respectively, of revenue. Rich media (video) ads (included in the 32% display ad share) also showed a slight market share decline, dropping to 7% from 8% in 2005.”
The IAB said that comScore and Nielsen/NetRatings, two of the largest interactive audience measurement companies, had committed to timetables for the auditing of their technologies and processes by a third-party auditor, adds InformationWeek.
Also See:
single advertising company – Microsoft buys ad agency for $6 Bn, May 21, 2007
InformationWeek – Online Ad Revenue Sets Record, May 23, 2007
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