Interactive Advertising Markets UP in a Down Economy
INTERACTIVE ADVERTISING DATA :: 11% Increase from Q3 ‘07, Up Slightly from Q2 ‘08 Despite U.S. Economy
There is some good news out of all the non-stop barrage of negative global economic data I have been seeing on the front page of the New York Times. The economy is further accelerating the interactive advertising industry. Budgets are moving to our neck of the woods because, now more than ever, there is a need for measurable accountability and ROI. This is very bullish for the performance marketing slice of the industry as we are now seeing advertisers looking for better ROI performance in the interactive sector.
The latest data released from the IAB shows Internet advertising revenues reaching almost $5.9 billion for the third quarter of 2008 – a significant 11 percent increase over the same period in 2007. While double-digit annual growth continues, the quarter-to-quarter curve remains relatively flat compared to recent past performance. The Q3 2008 figures are 2 percent higher than the Q2 2008 results. Regardless of the current conditions in the U.S. economy, Q3 ’08’s $5.9 billion represents the second-highest quarter results ever. For the first nine months of 2008, revenues totaled $17.3 billion, up from $15.2 billion in the same period a year ago and surpassing the record set in the first nine months of 2007 by nearly 14 percent.
“The growth of interactive advertising that we’ve been experiencing over the past few years has stabilized due in large part to the difficult current economic climate,” said Randall Rothenberg, President and CEO of the IAB. “Interactive advertising continues to be the most measurable and cost-effective way to reach consumers, and we see more and more marketers seeking to harness its power.”
David Silverman, a partner at PricewaterhouseCoopers LLP, added that, “a weakening economy will continue to be a challenge to all forms of advertising-supported media. However, the Internet should be better poised to withstand the storm given its ability to combine performance-based advertising along with broad-based branding.”
Quarterly $ Revenue Growth Comparison – 2000-2008 YTD
Source: PwC/IAB Internet Advertising Revenue Report (www.iab.net)
6 Comments, Comment or Ping
JTreiber
So what does this mean for brick & mortar merchants who are cutting ad-spending on traditional media to drive to store? Will we see them allocate budgets to interactive with specific purposes to drive in-store?
Dec 10th, 2008
peter bordes
JT
The answer is yes to both. More stores are finding higher traffic online and have actual done Interactive ONLY promos. Cyber Monday was much higher in ROI than Black Monday in store. Retailers are also looking for more accountable ways to getting interactive into the store. its all about metrics, accountability and more effective spend.
The economy is really causing everyone to look at there allocation to different channels. They are even realizing that there is waste in interactive http://www.relevantlyspeaking.com/?s=vrm&x=0&y=0
Its also causing further acceleration in the convergence of online and instore.
Dec 11th, 2008
Jeff Paul Internet Millions
Hi! Great post! I was looking around for some thing like that on the net for my college studies. I’m also a part of Jeff Paul’s program. So I’m still kinda new in internet marketing
Apr 1st, 2009
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