Wednesday, November 15, 2006

Internet Advertising Inches Up

Despite the headlines about $4 billion in ad money, according to the Internet Advertising Bureau, revenue from online advertising in Q3 was up just 2 percent over the second quarter of this year. While that's a 33 percent jump over a year ago, the rate of growth between quarters has slowed from last year.

Last year online ad revenue grew by 4.7 percent between the second and third quarters, so could we be seeing the brakes slowly being applied to online advertising?

Earlier this month JupiterResearch said that four categories -- media and entertainment, financial services, travel, and automotive -- will continue to represent the majority of spending in online advertising (57 percent) through 2011. Wasn't Yahoo just attributing its slowing growth to financial and automotive spending? Maybe these industries are where the slowdown in Q2-3 spending occurred.

Jupiter says that one quarter of all search advertising will come from media and entertainment, which bodes well for video ads since you would expect them to use rich media ads. Today that's not really happening -- I searched for Bruce Willis on Google, Yahoo and MSN, and got zero rich media ads in return. For shame.

By John Gartner at 12:37 PM | Comments (0)

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