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IDC Finds Internet Advertising Keeps Growing Fast Despite Economic Difficulties

FRAMINGHAM, Mass, May 30, 2008 – Internet advertising in the United States will continue to grow fast even as the current economic woes will lead to a contraction in ad spending overall, essentially accelerating the transfer of marketing budgets from the traditional media into the new. During the forecast period, Internet advertising will grow about eight times as fast as advertising at large. IDC finds overall Internet advertising revenue will double from $25.5 billion in 2007 to $51.1 billion in 2012.

The Internet will go from the number 5 medium all the way to the number 2 medium in just 5 years, making it bigger than newspapers, bigger than cable TV, bigger even than broadcast TV, and second only to direct marketing. Video advertising will be the principal disruptor of Internet advertising over the next five years by attracting the most new marketing dollars. Its revenue will grow sevenfold from $0.5 billion in 2007 to $3.8 billion in 2012 at a compound annual growth rate (CAGR) of 49.4%. This growth will take place because brand advertisers will shift significant amounts of money into these video commercials, primarily from broadcast television and to a lesser extent from cable television.

"The size of the online video audience as well as the time it spends watching video is sure to increase as broadband access penetration increases, connections become faster, and as more premium content is available," said Karsten Weide, program director, Digital Media and Entertainment. "What will also drive this trend is that consumers are starting to realize that, as opposed to TV, Internet video lets them watch what they want, when they want, and increasingly also where they want."

"Internet advertising will continue to grow in 2008 even though we expect marketers to pull back on ad spending across all media because of the current economic troubles, Video advertising will make great inroads online, while search advertising will lose some market share."

Search advertising will remain the one advertising format that will garner the most revenue over the forecast period in the United States. This means that for any media company, search must be a key part of its strategy. Any media company that is not Google cannot ignore this segment even if Google is towering above all others as segment leader with about 70% share of the segment's revenue.

A full copy of the report is available here.

Photo Advertising

6 MONTHS - $300

1 YEAR - $500

Your picture or logo (95 x 140 pixels)
with your contact information
and a link to your website.
Your ad will appear in the same format as the one above.
Post your ad on any city page.
Your ad will also appear in regular rotation on our Home Page,
and other key pages such as this FAQ page.
Cost: $50 per month with a minimum 6 month contract.

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Banner Advertising

6 MONTHS - $600

1 YEAR - $1000

Banner advertising is one of the oldest forms of internet advertising.
Good banners are proven effective at building brand awareness and directing internet traffic to your website.

Size: 468 x 60 pixels
Cost: $100 per month (6 Month Minimum) or $1000 per year.

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Keyword Advertising

6 MONTHS - $300

1 YEAR - $500

Your website can be linked from specific Keywords on any page. The Keyword you choose is mixed into the regular text and becomes a Hot Link directly to your website.

For example, here is what Keyword Advertising would look like in this sample text from the Hawaii page.

"Today, most of the economy is based on Tourism, centered primarily in the North Kona and South Kohala districts. Tourism is the largest industry in Hawaii, contributing 25% of the Gross State Product. Millions of tourists contribute to the state's Tax burden by paying the general excise Tax and Hotel room Tax".

Keyword advertising is our most targeted service.
Cost: $50 per word per page per month.

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