Web's ad revenue up 37 pct in first half 2006: study
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U.S. Internet advertising revenue rose  37 percent in the first six months of the year, hitting a  record of nearly $8 billion, according to a study released on  Monday.
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AMERICAN INTERNET advertising revenues have increased by more than 40 per cent in the first six months of this year. According to bean counters Price Waterhouse Coopers, US revenues for the first six months
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The Internet search giant posted profit of $1.07 billion, fueled by strong performance in its search and advertising business.
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Ask Jeeves Inc.  posted a higher third-quarter profit as Web-search advertising continued to fuel revenue growth.
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The average number of monthly visitors   to U.S. newspaper Web sites rose by nearly a third in the first   half of 2006, a study released on Wednesday said, though print   readership at some larger U.S. newspapers fell.
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(InfoWorld) - Ensuring publisher transparency, increasing advertising quality, and embracing video are key to maintaining a strong U.S. online advertising market, where revenue grew 35 percent in 2006 over 2005, according to an Interactive Advertising Bureau official. Marketers spent almost $17 billion advertising on U.S. Web sites in 2006, the fourth straight year of expansion for this market, the IAB said in a report issued Wednesday. "A 35 percent year-on-year growth is fantastic. We're very pleased," said Sheryl Draizen, the IAB's senior vice president and general manager. But to continue the successful run, some things need to be improved, and opportunities must be seized, Draizen said. For example, too many marketers fail to test their online ads with the same stringency with which they test their ads for other media like television, radio, and print publications. This is a big mistake because testing online ad campaigns before launching them is critical to ensure they are effective. Marketers often ignore the characteristics of a good online ad, she said. Publishers also must make marketers increasingly aware that online advertising can help them throughout the entire sales process for their products and services. The Internet is a tool to build brand awareness and gauge buying intent as well as for actual purchasing and subsequent fostering of customer loyalty, Draizen said. As such, online advertising deserves a bigger slice of companies' overall marketing budgets, she said. As things stand now, companies spend less than they should in online advertising, which made up only 6 percent of the total ad revenue in 2006. "This is disproportionately low if you look at the total Internet audience and the amount of time people spend online," Draizen said. By comparison, marketers spent almost $58 billion in direct mail advertising and about $51.2 billion in newspaper ads in 2006. Ultimately, marketers tend to stick to strategies that have worked for them, and they consider shifting ad dollars to the online medium as a risk mostly because it represents a change in tactics, she said. However, with each passing year, online advertising is perceived as less and less of a gamble, she said. It's also critical for publishers to deliver "the highest level of transparency and accountability" so that advertisers' confidence will continue to grow, she said. On this topic, click fraud incidence is currently very low and isn't having an adverse effect in online ad spending, Draizen said. Other industry observers, however, say click-fraud incidence is significantly high and seriously hurts the effectiveness of search advertising. Click fraud occurs when someone clicks on a pay-per-click ad without any intent to do business with the advertiser. Reasons for engaging in click fraud include the desire of a site publisher to increase commission revenue or the attempt by an advertiser's competitor to drive up its ad spending. One of the biggest growth opportunities in online advertising this year and next year will be video ads, which offer marketers an ad format that packs the appeal of TV ads and the targeting precision of Internet ads, Draizen said. Some highlights of the study include: *Â Search engine advertising made up 40 percent of online ad revenue in 2006, ranking as the biggest segment of the market. *Â Display advertising, which includes both banner and rich-media ads, generated 32 percent of the total revenue. *Â The 10 largest ad-selling companies grabbed 69 percent of total revenue, and the top 50 companies nabbed 93 percent. *Â Ads billed per impression generated 48 percent of revenue, while those billed per a specific action, like a click, made up 47 percent.ADVERTISEMENTIBM Information On Demand 2006Industrial Industry Leaders, please join us at IBM's premier information management global event, IBM Information On Demand 2006, October 15-20, Anaheim, CA. More IBM business and technical solutions content in one place than ever before! Select from  over 800 sessions. Register today!
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Google lost ground in the U.S. Internet advertising market for the first time in two years during 2007 due to&#160;slower growth in the fourth quarter, market researcher IDC said Monday.The Internet search giant saw advertising sales growth slow to 40 percent year-on-year in the fourth quarter, down from 50 percent year-on-year in the third quarter, IDC said. That blip cut Google&#39;s advertising market share in the U.S. to 23.7 percent in the fourth quarter, down 0.5 percentage points from the third quarter.The decline comes despite continued strong growth in Internet advertising in the U.S., according to IDC.U.S. Internet advertising few 27 percent year-over-year in 2007 to $25.5 billion, while total U.S. Internet ad spending in the fourth quarter alone rose 28 percent compared to the same time in 2006, IDC said. Companies continue to shift ad spending to online media from traditional media, according to the market research company.Google&#39;s fourth quarter decline could spell opportunity for its rivals.A&#160;merger between Microsoft&#39;s Internet businesses and Yahoo&#160;would give the combined company a market share of 17 percent in the U.S. Internet advertising market based on fourth quarter data, IDC said in a statement. While the figure would leave Microsoft-Yahoo behind, &quot;it would give them a much better fighting chance than if they went it alone,&quot; IDC said.Google could not immediately be reached for comment on the IDC report.&#160;
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Total advertising expenditures in the first six months of 2006 increased 4.1 percent to $73.0 billion as compared to the prior year period, according to data released today by TNS Media Intelligence, the leading provider of strategic advertising and marketing information.
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Internet advertising is continuing to increase with the latest US figures showing the medium generated $4.6bn in the first six months of 2004 -- a 40 percent increase over the first half of 2003.
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Internet advertising revenues in the United States grew 37 percent in the first half of this year, reaching a new high of $7.9 billion.
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Internet media company Yahoo Inc.  on Tuesday posted a jump in quarterly profit fueled by online advertising revenue and the sale of an investment.
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Online ad spending in the U.S. grew 34 percent in 2006, compared with 2005, as marketers continued expanding their use of the Internet to promote their products and services, according to a new study.
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(InfoWorld) - Online ad spending in the U.S. grew 34 percent in 2006, compared with 2005, as marketers continued expanding their use of the Internet to promote their products and services, according to a new study. With an estimated $16.8 billion spent, the U.S. is a "healthy environment" for online advertising, the Interactive Advertising Bureau (IAB)Â and PricewaterhouseCoopers (PwC)Â said Wednesday. Convinced that Internet advertising's effectiveness continues to improve, U.S. companies are steadily increasing their online marketing budgets, the organizations said. Ad spending grew an estimated 32 percent in the fourth quarter to $4.8 billion, the highest quarterly total ever. With another year of solid growth, the U.S. online advertising market distances itself more from the difficult years that followed the dot-com bust, when spending money for online marketing was somewhat discredited. After peaking at $8.2 billion in 2000, U.S. online ad spending fell in 2001 and 2002 but began regaining lost ground in 2003 as the once-disgraced Internet industry showed its first signs of recovery and the start of the Web 2.0 era. In 2004, with the emergence of GoogleÂ as a search engine and advertising powerhouse, online marketing increased its momentum. That year, the market finally broke the 2000 record, ending with $9.6 billion in online ad spending, and Google's IPO became further proof of the Internet industry's rebound. By growing every year since 2003, online ad spending has played a major part in fueling a new wave of technical innovation and venture capital investment in the Internet market. A particularly vibrant segment has been search engine pay-per-click ads, the format that generates most of Google's rising revenue. IAB and PwC reached their estimates from data they collected from the top 15 online ad sellers in the U.S. The organizations will report actual results for the third and fourth quarters of 2006 next month. Â
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(InfoWorld) - Microsoft drew the largest number of Web site visitors worldwide in December, a recurring accomplishment that makes the company's disappointing online ad business all the more disconcerting. Close to 509 million unique visitors, ages 15 and up, went to Microsoft Web sites in December, comScore Networks said Wednesday. Google came in second with a little over 494 million, while Yahoo landed in third place with almost 477 million unique visitors. Microsoft also led in March 2006, and its lead over Google was bigger. Microsoft had almost 539 million unique visitors to almost 496 million for Google. Third place went to Yahoo with little over 480 million. However, the difference in online ad revenue between Microsoft and its two rivals is massive, a sign that, despite heavy investments in the past three years, Microsoft isn't close to matching their ability to monetize Web site traffic, especially Google's torrid growth in the search engine space. In the quarter ended Sept. 30, 2006,Â Google's revenue, which comes mostly from search engine ads, grew 70 percent to $2.69 billion, whileÂ Yahoo's revenue, mostly derived from various forms of online ads, came in at $1.58 billion, up 19 percent. By comparison, in that same quarter, Microsoft's Online Services Business, which includes online ad and Internet access sales, generated only $539 million in revenue, down from $564 million in the same quarter the previous year. Microsoft executives have acknowledged that the Achilles heel of its online ad business is its search engine segment. In December, Microsoft's share of U.S. search engine queries continued to fall, landing at 10.5 percent, a distant third place from leader Google, which nabbed 47.3 percent, comScore said in a separate study. In July 2005, Microsoft's U.S. search engine query share stood at 15.5 percent and Google's at 36.5 percent, according to comScore. Overall, unique Web site visitors grew 10 percent globally from December 2005 to December 2006 to almost 741 million. Microsoft and Yahoo both grew 5 percent each. However, Google topped the market growth category with a 13 percent increase, in part due to its international appeal and to the rising popularity of some of its non-Web search services, comScore said. For example, Google's image search engine grew its unique visitors by 40 percent, Gmail by 71 percent, and Google Maps by 62 percent.
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U.S. companies spent 37 percent more in online advertising in the first half of the year, compared with the same period in 2005, according to a new study.
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Sales from online advertising hit $4.6 billion in the first half of 2004, up more than 40 percent from the same period the previous year, according to a new US study.
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NEW YORK -- Internet advertising revenues jumped 40 percent in the first half of this year, driven largely by the growing popularity of keyword ads tied to search results.