IC-Agency - Your 6th sense online InsightOut. IC-Agency Blog

Increase of 38% in Q1 for Online Advertising!


(by Lucas Roze)

Online advertising is amongst the fastest growing advertising medium. In recent years, the growth patterns have been nothing shy of astonishing. The last quarter (Q4) of 2005 saw a rise of 6% in the US for market, and even more impressive is the Q1 of 2006 that saw a 38% increase, according to a report published by the Interactive Advertising Bureau. This last increase equates to a record $3.9 billion in the, presumably, slowest months for advertising.

Online behaviour in North America has shifted to the faster broadband connection approach for more efficient surfing. This transition of speed opened a fundamental door for online advertising, allowing advertisers to offer what is known as rich media. Rich media is described by Wikipedia as an “interactive digital media that exhibits dynamic motion, taking advantage of enhanced sensory features such as video, audio and animation”. This type of media is ultimately focused towards broadband connections. Broadband is ideal because of its rendering capabilities. This new wave of online advertising is not only attention grabbing, but can be better targeted to the audience that is more likely to purchase the product or acquire the service. Therefore, this equals to a much greater ROI for far less costs than conventional advertising.

Furthermore, companies like eBay and Yahoo are teaming up to drive more effective online advertising. Google is still the current champion in this field with over 90% of their revenue. Moreover, big companies in other sectors such as Merck (Pharma), Procter & Gamble (Products) and GM (automotive) are focusing their budgets to the online vessel which helps to leverage the market.   

With the current population more reliant on the Internet to gather information and purchase products than traditional sources, it seems only natural that advertisers will focus online to target their client base. While television and print ads seem to be losing their lustre, online ads are the next cost effective solution. This radically upward slopping trend seems to be creating more buzz to advertise online, but the down side to this is that the more people advertising means the inevitable elevation of prices. However, things are looking up, Forrester Research predicts that online spending will increase to $26 billion by 2010 (4 years away!). That’s $26 of $500 billion total advertising expense worldwide or (5.2%). So online advertising will only get better and more precise in the years to come, so plug in your mouse and start clicking.

By IC-Academy | May 31, 2006 | E-Advertising , News & Trends

The comments to this entry are closed.

TrackBack

TrackBack URL for this entry:
https://www.typepad.com/services/trackback/6a00d83455cacc69e200d8352d707653ef

Listed below are links to weblogs that reference Increase of 38% in Q1 for Online Advertising! :

Subscribe to InsightOut.
InsightOut is IC-Agency’s interactive think tank. It is animated by our team in Canada.

Contact Us
www.ic-agency.com


Latest Posts
Audemars Piguet and IC-Agency rewarded in Paris
The Challenges of Exclusivity and Social Media
Mobile Marketing for Luxury Watch Brands in Action
Effectively Working Search and Social Media
Your Brand Up for Auction on Google in Europe

Latest Comments
Faye from Hong Kong on Boucheron and e-commerce
The Professionel on Luxury, the Internet and the Buying Process
WS Mike on The Innovation Risk
David on AOL Leaks Info on Google
Marc-O. on Power and the Internet

Categories
Actualité
Competitive Monitoring
Demand Analysis
Domain Names
E-Advertising
E-Commerce
E-reputation
Holistis
IC-Agency Events
Luxury Watch Special
News & Trends
Our Pick
Perception Analysis
Search Engine Optimization
Search Engine Protection
Sectorial Analysis
Sponsored Links
Strategic Consulting

Archives
December 2010
November 2010
June 2010
March 2010
January 2010
October 2009
July 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
April 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006

Contributors
Flavio Quaranta
Associate Partner, Bathurst
Jonathan Tower
Internet Marketing Specialist

Books we reccommend
John Battelle: The Search: How Google and Its Rivals Rewrote the Rules of Business and Transformed Our Culture John Battelle / The Search: How Google and Its Rivals Rewrote the Rules of Business and Transformed Our Culture

Blogs we read
Slashdot
business2blog
Stephen's Web
TechCrunch
Blogspotting
Om Malik
John Battelle

License
Some Rights Reserved