Online Advertising 2004

This report just made my night. [Hat tip,

Rafat for pointing it out]

I dumped the chart into Excel and sorted by the biggest % change and you can see that Internet advertising is up

25.80% over the last nine months when compared to the same period in 2003. Additional, you can see that as a % of the

whole Internet media was up .7% from period to period, the most of any other category (cable ad network TV both

increased by .5% of the total pie, most others went down!).

B-to-B magazines are also showing little signs of growth, and I can tell you why:

1. B2B advertisers are moving online because it offers much better value.

2. B2B didn’t get hit as hard during the downturn, and as such doesn’t have to grow as much (Outdoor, which took a

beating in post dotcom has been coming back strong conversely).

As far as I’m concerned the Internet is the most powerful medium for advertising and response, so I would expect that

the 5.5% of total media spend number to grow to 10-15% over the next ten to 20 years”putting it right up there with

national TV, newspapers and consumer magazines.

For all the hype around the Internet, one of the things that has been under-hyped has been the success story of online

advertising. While the dotcoms (at least round one of the dotcoms) imploded, the advertisers and marketers only

increased their online spending. More evidence that what caused the dotcom meltdown had less to do with the industry,

and more to do with the inexperience of management combined with absurd valuations they were chasing.

The reality of online advertising is that it is huge”you don’t need to hype it, it just is.

MEDIA

Jan-Sept 2003

Jan-Sept 2004

% Change

% of Total 2003

% of Total 2004

% Change

INTERNET

$4,446

$5,593

25.80%

4.8%

5.5%

0.7%

OUTDOOR

$2,042

$2,401

17.60%

2.2%

2.3%

0.1%

SYNDICATION – NATIONAL

$2,471

$2,899

17.30%

2.7%

2.8%

0.2%

CABLE TV

$9,035

$10,490

16.10%

9.7%

10.2%

0.5%

NETWORK TV

$14,438

$16,463

14.00%

15.5%

16.1%

0.5%

LOCAL MAGAZINES

$234

$259

10.30%

0.3%

0.3%

0.0%

CONSUMER MAGAZINES

$13,524

$14,879

10.00%

14.6%

14.5%

0.0%

NATIONAL NEWSPAPERS

$2,238

$2,455

9.70%

2.4%

2.4%

0.0%

SPOT TV

$11,284

$12,343

9.40%

12.1%

12.0%

-0.1%

SUNDAY MAGAZINES

$975

$1,053

8.00%

1.0%

1.0%

0.0%

NEWSPAPERS (LOCAL)

$16,650

$17,752

6.60%

17.9%

17.3%

-0.6%

HISPANIC MEDIA

$2,726

$2,873

5.40%

2.9%

2.8%

-0.1%

FSI’s

$1,017

$1,065

4.70%

1.1%

1.0%

-0.1%

NETWORK RADIO

$735

$754

2.60%

0.8%

0.7%

-0.1%

LOCAL RADIO

$5,357

$5,457

1.90%

5.8%

5.3%

-0.4%

B-TO-B MAGAZINES

$3,803

$3,860

1.50%

4.1%

3.8%

-0.3%

NATIONAL SPOT RADIO

$1,925

$1,875

-2.60%

2.1%

1.8%

-0.2%

TOTAL

$92,900

$102,470

10.30%

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