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Online Advertising Results and 2009 Projections

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As you consider different approaches to increasing the traffic browsing your website and purchasing your products, it can be confusing and overwhelming. After all, there are many methods of free advertising, paid advertising, blogging, newsgroup postings, forum participation, social networking, and many more. It’s hard to know what works best – and since not all businesses are the same, what works for one may not work for the other.

To help you sort through the options, you need to understand the significance and value of online advertising as an option. The Interactive Advertising Bureau (IAB) partners with PricewaterhouseCoopers (PwC) annually to conduct an Internet advertising revenue evaluation and they released reports in late 2008 that indicate online advertising is paying off.

The IAB is comprised of leading media and technology companies who are responsible for selling 86% of online advertising in the U.S. The IAB is focused on enhancing the growth of interactive advertising online and they promote the value of interactive advertising to businesses.

The reports conducted by PricewaterhouseCoopers are considered to be highly accurate measures of online advertising revenues. They compile data and statistics from information supplied by companies selling products and services online and that information reflects data from websites, commercial online services, email providers, and many other companies that sell online advertising. They are extremely reputable and respected for the work they do.

Some of the most compelling statistics and findings from the 2008 PwC study are included here:

Internet advertising revenues (U.S.) were over $11 billion for the first six months of 2008, which was a new half-year record.

First half of 2008 revenues indicated a 15.2% increase over the 2007 first half-year revenues.

Display related advertising reached almost $4 billion for the first six months of 2008 for a 19% increase over the first six months of 2007. Display related advertising included banner ads, digital video, sponsorship, and rich media.

Internet advertising showed continual and strong growth in the first six months of 2008 over the same period in 2007.

Classified revenues in first-half 2008 were at $1.6 billion for six months.

Referrals and lead generation were at $806 million for 6 months.

With numbers like these, it’s easy to see why the online advertising business is such a good idea. The money being spent in online advertising is having a positive effect on the bottom line of online companies – both large and small. One of the most intriguing things about online advertising is that there are a tremendous number of economic models and strategies that will fit into most any budget.

eMarketer, a company which conducts market research and trend analyses on the Internet, predicts that online advertising will continue to be strong in 2009. Although budgets and finances will be more highly scrutinized in 2009 due to the unstable economic climate, people still need to reach their target audiences.

eMarketer makes the following predictions for 2009:

search marketing spending will grow by almost 15%, to $12.3 billion

display ads will reach almost $5 billion

video marketing will move to $850 million – the biggest growth projection for 2009 at almost 45% increase over the previous year

Classifieds, lead generation, sponsorships, and email will continue and remain fairly steady in 2009

Multi-cultural ads will increase to target multiple populations with language and culturally specific advertising messages

U.S. Internet ad spending will increase by almost 9% to $25.7 billion in 2009, a substantial increase when compared with other types of media (this will be the lowest year over year increase for online advertising ever, but it is still strong given the current economic conditions and maturing of the online business)

With the positive outlook and projections for online advertising spending and revenues in 2009, online business will continue to grow and expand. Spending money in online advertising is a smart business move if you want to keep the traffic flowing and the sales ringing up. It’s just a matter of selecting the best formats and methods of online advertising to meet the needs of your business and your budget.




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