Wednesday
It's Official -- Online Advertising Is Back
Rich media and search help pave the way as traditional media take a back seat.
After a two-year slump, online advertising succeeded in coming back last year, says a report released by DoubleClick and Nielsen//NetRatings.
AdRelevance reported that online advertising rose to its highest levels of the year with 280 billion impressions in the fourth quarter. From the first quarter to the fourth quarter, DoubleClick volume was up 49 percent. The Internet Advertising Bureau also reported that ad spending grew 20 percent year over year to $7.2 billion.
'We are absolutely in an online advertising recovery," says Doug Knopper, senior vice president and general manager, Advertiser & Publisher Solutions at DoubleClick. "The market has turned around.
"Last year marked the first time that large traditional advertisers began to spend more online," says Charles Buchwalter, vice president of client analytics, Nielsen//NetRatings. "While the online medium is still relatively young," the growth of broadband paints a promising picture for online ads, as advertisers recognize that people are spending more time online and consuming more online media."
Online spending growth (+11.3 percent) beat spot TV (+3 percent), outdoor ( +5.2 percent) and network TV in the first quarter 2003 vs. first quarter 2002. Online growth tapered in the third quarter 2003 to 5.9 percent over the third quarter 2002, but still outpaced TV growth 3.5 percent.
Automotive had the largest growth on an impression basis year-over-year, at 74.9 percent, and should continue to increase, the report says. Telecommunications also proved big for online advertising thanks to the FCC portability ruling, coming in third at 31.2 percent growth. Almost 9 percent of total spending was devoted to retail, which showed a decrease in impressions.
Nielsen//NetRatings AdRelevance projects rich media to grow 223 percent in the first quarter to the fourth quarter to 17.4 percent of all ads. Rich media increased to 39.7 percent of all ads served by the fourth quarter. While rich media has soared, there's still much room for growth as new marketers and advertisers enter the interactive world.
Pop-ups and pop-unders, the most controversial type of online advertising, remained steady, accounting for less than 2 percent of all ads served, while AdRelevance showed them as owning between 5 and 7 percent of the total market. Big brand advertisers continue to stay away from them.
The effect of Search, a hot spot with online advertisers, is category relevant. A survey found that of more than 2,000 consumers who bought certain types of products in the last six months, their usage of search varied by product type. Of the visitors on Web sites to find about products and services, 58 percent of those searching for consumer electronics used a search engine as well as 53 percent for those seeking prescription drugs.
"I think you will see it growing organically," Knopper says, with existing marketers continuing online advertising and new ones coming in. "A lot of marketers don't have a presence online, you will see a shift from other forms of media."
After a two-year slump, online advertising succeeded in coming back last year, says a report released by DoubleClick and Nielsen//NetRatings.
AdRelevance reported that online advertising rose to its highest levels of the year with 280 billion impressions in the fourth quarter. From the first quarter to the fourth quarter, DoubleClick volume was up 49 percent. The Internet Advertising Bureau also reported that ad spending grew 20 percent year over year to $7.2 billion.
'We are absolutely in an online advertising recovery," says Doug Knopper, senior vice president and general manager, Advertiser & Publisher Solutions at DoubleClick. "The market has turned around.
"Last year marked the first time that large traditional advertisers began to spend more online," says Charles Buchwalter, vice president of client analytics, Nielsen//NetRatings. "While the online medium is still relatively young," the growth of broadband paints a promising picture for online ads, as advertisers recognize that people are spending more time online and consuming more online media."
Online spending growth (+11.3 percent) beat spot TV (+3 percent), outdoor ( +5.2 percent) and network TV in the first quarter 2003 vs. first quarter 2002. Online growth tapered in the third quarter 2003 to 5.9 percent over the third quarter 2002, but still outpaced TV growth 3.5 percent.
Automotive had the largest growth on an impression basis year-over-year, at 74.9 percent, and should continue to increase, the report says. Telecommunications also proved big for online advertising thanks to the FCC portability ruling, coming in third at 31.2 percent growth. Almost 9 percent of total spending was devoted to retail, which showed a decrease in impressions.
Nielsen//NetRatings AdRelevance projects rich media to grow 223 percent in the first quarter to the fourth quarter to 17.4 percent of all ads. Rich media increased to 39.7 percent of all ads served by the fourth quarter. While rich media has soared, there's still much room for growth as new marketers and advertisers enter the interactive world.
Pop-ups and pop-unders, the most controversial type of online advertising, remained steady, accounting for less than 2 percent of all ads served, while AdRelevance showed them as owning between 5 and 7 percent of the total market. Big brand advertisers continue to stay away from them.
The effect of Search, a hot spot with online advertisers, is category relevant. A survey found that of more than 2,000 consumers who bought certain types of products in the last six months, their usage of search varied by product type. Of the visitors on Web sites to find about products and services, 58 percent of those searching for consumer electronics used a search engine as well as 53 percent for those seeking prescription drugs.
"I think you will see it growing organically," Knopper says, with existing marketers continuing online advertising and new ones coming in. "A lot of marketers don't have a presence online, you will see a shift from other forms of media."
