Online Ad Revenue Continues To Grow

According to the Interactive Advertising Bureau Internet ad revenues exceeded $5 Billion dollars in the second quarter of 2007. Here’s the full article: INTERNET ADVERTISING REVENUES CONTINUE TO SOAR, REACH NEARLY $10 BILLION IN FIRST HALF OF ‘07. They also have a full PDF of the Price-Waterhouse report as well. I scanned through it and found some of the following interesting points:

1. Retail Consumer product advertising is the largest spender, followed by financial services and computing.

2. Search based advertising made the most money as a percentage, 40% of the market. Can you guess who owns the market in search based advertising? You guessed it, our old pal Google. They’ve got an advertising model that works coming and going and they’re making a killing doing it.

3. The 10 biggest online advertising companies accounted for 70% of the sales. The top 50% accounted for 91%. While it looks like you might want to be with one of the top advertisers, just remember that 9% of $5 billion is a substantial hunk of change.

If you want to see where possible future opportunities lie for bloggers and other online marketers this report offers some clues.

First of all, consumer product promotion looks like the place to be, the growth area. Next, couple this with advertising methods outside of Google’s dominance, for example sponsorship. Product placement is a big revenue source for TV and movies, could it work for blogs? Would you run a branded theme on your site if you were paid for doing it?

Another potential area would be rich media widgets that loaded dynamic content pushed to them by an ad server. Some new widgets are approaching this but aren’t quite there yet. Would you run this kind of ad on your site?

Let me know what you think about the potentials and pitfalls mentioned in this report by leaving me a comment.


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