Wednesday, April 19, 2006

Online Advertising Still Growing Strong

Online Advertising Still Growing Strong

APRIL 19, 2006

Good news! A pair of new reports indicate that online advertising continued to grow in the first quarter of 2006.

According to new Nielsen//NetRatings AdRelevance tracking data, marketers bought 185 billion display ad impressions in the month of March. That is nearly twice as many as the 97 billion that were bought in March 2005 and 31% more than February's 141 billion.

Confirming this t rend, the results of a survey from Deutsche Bank and MediaPost, and conducted by InsightExpress, found that, of the media executives interviewed for the survey, 72% said their clients spent more on Internet advertising in the first quarter — and 41 % of them saw increases of more than 10%. Only 6% reported a spending decline, while 18% saw no change in spending.

The survey showed that online ad prices are rising, too.

A majority of responents to the survey (55%) said that the cost-per-thousand impressions for premium inventory was more in 2006, and 15% reported increases higher than 10%. Half the respondents also said pricing for run-of-network inventory had increased, with 9% reporting price increases of more than 10%.

The unsurprising conclusion? Advertisers are spending more on online ads — and online ads are costing more.

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