The Optimists Guide To Online Ads

While advertising dollars spent in cyberspace is on the rise, the overall slice of the pie is smaller than what many may suspect. In fact, one source says Internet advertising is a decade of steady growth away from overtaking newspapers. For the optimistic advertiser, this means there's lots of room to grow. The Interactive Advertising Bureau and Pricewaterhouse Coopers reported that Internet advertising revenue in the first half of 2005 is outpacing the first half of 2004 by 26 percent. This growth is a repeat of the previous year when 2004 upped 2003 by 29 percent. But a Banc of America Securities study of the 100 leading US advertisers (those whose advertising budget exceed $1 billion) found that Internet advertising spending composed of only 5.3 percent of these companies' total budget. Newspapers, on the other hand, won 21 percent of big advertiser love. Additionally, Internet ad spending was dominated by three categories, telecommunications, retail, and entertainment, only three of the seven top categories. As quoted by Tech Dirt was smart to point out two other trends that may be indicative of the direction advertising dollars will take. Newspapers, though reaching an ever-plentiful Baby Boomer demographic, are much less likely to reach the more attractive young male demographic than the Internet. Mike is astute enough to also note that this coveted demographic is reported to be abandoning movie theaters, in favor of home theaters and a more controllable Internet experience. Others have consistently