Online advertising jumps 26 percent

Posted by Wildfire Marketing Group | September 27th, 2005

Online advertising revenue totaled $5.8 billion for the first two quarters of this year – 26 percent more than the same time period in 2004, according to figures issued Monday by the Interactive Advertising Bureau and PricewaterhouseCoopers. Search advertising revenue reached $2.3 billion, or a 27 percent increase over Q1 & Q2 of 2004. Search accounted for 40 percent of revenue, followed by banners and classified at 20 percent and 18 percent, respectively. Rich media accounted for only 8 percent of online ad revenue but growth was 26 percent and is expected to continue pace. Sponsorship was the only online category to shrink, constituting just 5 percent, down from 9 percent.

So what does this all mean for you? As an advertiser in this rapidly fragmenting world it means that you have to diversify your advertising channels. The days of advertising in your local newspaper and calling it a day are long behind us. Almost all companies are now being forced to compete on a national, if not global level because of the Internet and those that resist will be left behind.

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