Online ad spending poised for 20 percent jump this year. Strong demand for U.S. display advertising is helping pump up projections for the overall online advertising market, which is now set to grow by 20 percent this year to $31.3 billion, according to new estimates from eMarketer. The firm updated a previous estimate of 10 percent growth for 2011, largely on the strength of display advertising which is now poised to overtake search advertising within five years. EMarketer said search advertising will grow by 19.8 percent this year to $14.4 billion, outpaced by online display ads, which will grow 24.5 percent to $12.3 billion. Increased video and banner ads are fueling the growth of display advertising with video ads expected to pull in $2.2 billion this year and banner ads estimated to get $7.6 billion.
Overall, online advertising is expected to account for almost 20 of all major media ad buying this year, up from 17 percent last year and by 2015, online ads will represent 28 percent of all U.S. media ad spending. What is Premium Social Advertising? | Jon Steinberg. IAB: Internet Ad Revenues In The U.S. Hit Record $6.4 Billion In Q3 2010. Online advertising revenues in the U.S. hit $6.4 billion in Q3 2010, representing a 17 percent increase over the same period in 2009, according to estimates presented moments ago by the Interactive Advertising Bureau in tandem with PricewaterhouseCoopers. This marks the highest quarterly result ever for the industry. This is not the first time IAB and PwC got to announce record numbers this year. Last month, they said Internet advertising revenues in the U.S. were at $12.1 billion in the first half of 2010, setting a new half-year record that represented an 11.3 percent increase over the first half of 2009.
Numerous Adblock Plus users be damned. The first quarter of this year alone was good for $6 billion in online advertising revenues in the United States, so a massive increase this ain’t. The previous industry record was set in the fourth quarter of 2009, when Internet advertising revenues in the U.S. climbed to $6.3 billion. U.S. Online Advertising Rises 11.3 Percent In First Half Of 2010. Online advertising is showing healthy gains this year. During the first half of 2010, online advertising revenues were up 11.3 percent to $12.3 billion, according to a new report from the Interactive Advertising Bureau and PriceWaterhouseCoopers (embedded below).
At this rate, the report estimates that online ad revenues for the full year should surpass the 2008 peak of $23.4 billion. On a quarterly basis, online ad revenues for the second quarter $6.2 billion. That was 13.9 percent higher than last year, and 4.1 percent better than the first quarter of 2010, but still not quite as high as the peak in the fourth quarter of 2008. The report also offers the following stats (all numbers are for the first half of 2010):
Page views required to generate. Facebook, MySpace, LinkedIn, Beebo, Plaxo, Orkut, and MSN Spaces are the biggest well known social network spaces. But what about the 800 other sites scrambling for audiences in the social network space? Can they generate $1M in advertising revenue per month, or even per year? Will they ever be profitable? USA Today says "Social Network Sites Work To Turn Users Into Profits" and summarizes the problem with this quote; "Short of striking it rich with online ads or creating a new revenue stream, how can so many sites leverage their vast audiences? In many respects, it is the same query that dogged portal companies in the mid-1990s and search engines in the early '90s. Some were sold. CPM versus CPC - Big audiences are great but how you monetize them is the key to financial success. A penny for your thoughts? How much traffic is needed to generate $1M in ad revenue?
A New Revenue Model? It will probably take a new revenue approach to make many Social Networks profitable. How A $5 CPM Is Really Only Worth $1. JPMorgan Forecasts A 10.5 Percent Rebound In U.S. Display Advert. In the advertising industry overall, revenues generated by direct and brand advertising are roughly split 50/50. But in the online world, where direct advertising is represented mostly by search and email ads and brand advertising by graphical display ads, the split is closer to 70/30 in favor of direct ads.
Last year, with the economy down, the display portion of the U.S. online advertising industry had a particularly rough time. Total revenues in 2009 were down 5.2 percent to $7.5 billion, estimates JPMorgan analyst Imran Khan in a new Internet industry report. But he forecasts that in 2010 U.S. display advertising will rebound 10.5 percent to $8.3 billion, buoyed by a rising economy and actions to reduce the glut of display ad inventory for higher quality sites and content. Khan expects U.S. search advertising to grow an even brisker 13.2 percent pace in 2010 to $16.6 billion, after virtually flat 0.8 percent growth in 2009. Terence Kawaja's IAB Networks and Exchanges Keynote.
Here's Who Gets the Highest Ad Rates Online. NEW YORK (AdAge.com) -- Online ad rates, we're told, are on an express train to zero, helped along by gagillions of impressions generated by Facebook, Twitter and its ilk, and the networks, exchanges and targeting technologies that allow advertisers to buy audience as a commodity, without dealing with individual sites at all. And while the recession has put another hit on CPMs -- the term ad buyers and sellers use as shorthand for the cost for 1,000 impressions -- across the web, some sites can still pimp fat ad rates either by virtue of their reach, specialized audience or unique environment. Who's getting the best ad rates on the web today?
The slideshow that follows, culled from agency buyers and media sellers, is far from scientific, but gives a good sense of who can still charge bank and why. AOL $500,000-$700,000 for homepage takeover Everyone loves AOL CEO Tim Armstrong, but does anyone love him to the tune of $800,000?