Internet Ad Spending Report

The Interactive Advertising Bureau (IAB) recently released information on Internet ad spending. Internet advertising revenues reached $5.8 billion for the first quarter of 2008. These numbers represent an 18.2 percent increase over the same period in 2007, and represent the second highest quarter ever recorded, after Q4 2007’s $5.9 billion.

“We continue to experience significant growth and vitality in interactive marketing, media and advertising,” said Randall Rothenberg, president and CEO of the IAB. “We expect growth to continue, as consumers spend more and more time online, and marketers find more – and more innovative – ways to reach them through digital media.”

This is what they were saying in Q1. When we take a look at the 6 month numbers they have fallen off pretty sharply. Compared to the same 6 months of 2007 we are only at about an 8% increase due to a 3.7% decrease (vs. 2007) in Q2.

But where is this money coming from? Is it magically appearing from the government printing presses? No, of course not, this isn't a corporate welfare bailout, it being diverted from other mainstream media outlets.

"Spot TV spending dropped 4.4 percent as reductions in automotive, retail and telecommunications advertising offset gains from political spending. Network TV fell 2.4 percent on weaker prime time results. Newspaper media slipped 7.4 percent and radio media decreased 6.5 percent on further slowdowns in spending from auto, financial, retail and telecom categories." via

Notice the most significant decrease. Yep, newspaper. Many of you know that for some time I have been predicting the death of newsprint as we know it. Trends like this continue to support my theories.

Bottom line? Explore how advertising online can benefit your company. The formula is simple. Plan, plan, execute and track. Soon you will realize that an reallocation of dollars from newsprint and yellow pages has not hurt your business, but helped.