The Web is #1 but ad spending is still around 8%
I feel like I’m going on a post rampage today, but I couldn’t pass this story up. Cnet reports that a new study has found the Internet is the #1 most used media; that trumps TV, newspapers, magazines. Here is the real kicker: “studies have shown that only about 8 percent of advertising goes to the Internet.”
Despite what some “experts” have called a PPC advertising bubble, I see the potential for very strong growth in internet advertising. I’d say that see these numbers double would be a conservative estimate. For publishers and domain investors this is great news. For those that rely on buying traffic to turn a profit, not so great.
I saw the same article and had the exact same feeling. Did you notice how the study was limited to two cities? Some sample.
Eric
Comment by Eric Frenchman — June 6, 2006 @ 7:13 pm
Hmm, didn’t see that I’ll take a closer look.
Comment by Andrew — June 6, 2006 @ 8:52 pm
100%.
Madison Ave hasn’t discovered the web yet. It will take a new breed of marketers to harness the possibilities.
Comment by Joe — June 7, 2006 @ 12:17 am
I think that DVR technology that lets people fast-forward through commercials will make television advertising less and less attractive as it gains more widespread use. My family already records every show we watch just so that we can fast forward through the commercials and save 15-20 minutes out of each hour-long show.
It’s just a matter of time until more of the big-time companies start taking notice of Internet advertising opportunities.
Comment by John — June 7, 2006 @ 2:01 pm
John, I think they already have — News Corp. Even NBC is now submitting videos to YouTube.
I use DVR a low. I don’t watch much TV as it is (now that my favorite shows, NCIS and Alias, have wrapped up their seasons/series I hardly watch any.) I think that TV will adapt to this over time. I certainly don’t see the web & DVR as a doomsday scenario. The old media companies that are properly positioned for this change, which has really been underway for over a decade now, will flourish.
Comment by Andrew — June 7, 2006 @ 2:33 pm