Online advertising continues to rise
The tendency to increase prices for online advertising is very annoying to advertisers, while online publishers and investors are pretty much rubbing their hands, the NY Times writes .
The reason for the rise in prices is that Internet advertising is now becoming fashionable. Its effectiveness has already been proven, so now both small and large advertisers are increasing their presence on the Web. Naturally, the market is heated. Competition of advertisers on large portals and other advertising sites is growing. Increased demand causes higher prices.
For example, in some sections of the MSN.com portal over the past two years, advertising has risen tenfold . According to advertising agencies, the largest growth is recorded in popular thematic categories, such as health care, cars, and travel. A similar situation is observed not only on MSN, but also on Yahoo , and on other portals.
Unfortunately, there is no generally accepted industry statistics on prices on the market, because many platforms and advertising agencies prefer to hide this information. It is difficult to say how prices change on average in the market, but the rise in prices on popular portals is visible to the naked eye.
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According to eMarketer, this year the total turnover of online advertising has grown by 31% to $ 16.4 billion. In America, 6% of all advertising is being posted online. Next year, online advertising should grow another 19% to $ 19.5 billion.
Interestingly, the same rapid growth of online advertising was observed in the late 90s during the dotcom boom. But experts emphasize that then the growth was due to irrational demand in the wake of venture investments, and now advertisers get real-world effects from online advertising that can be measured.
Along with overall growth, however, prices are declining in some segments. For example, there is a decline in prices for advertising video. In addition, experts note some price cuts on small sites, whose audience is not clearly expressed, that is, it is blurred by age and social groups.
Search advertising, which makes up 42.5% of the entire advertising market, is not so expensive. According to the company Fathom Online , over the past year, the average cost of a single transition through an advertising link has increased from $ 1.44 to $ 1.48.
According to experts, in 2007 the rise in prices will continue. Surveys of the largest advertisers show that almost all of them are going to increase spending on Internet advertising by 15–30% next year.
The reason for the rise in prices is that Internet advertising is now becoming fashionable. Its effectiveness has already been proven, so now both small and large advertisers are increasing their presence on the Web. Naturally, the market is heated. Competition of advertisers on large portals and other advertising sites is growing. Increased demand causes higher prices.
For example, in some sections of the MSN.com portal over the past two years, advertising has risen tenfold . According to advertising agencies, the largest growth is recorded in popular thematic categories, such as health care, cars, and travel. A similar situation is observed not only on MSN, but also on Yahoo , and on other portals.
Unfortunately, there is no generally accepted industry statistics on prices on the market, because many platforms and advertising agencies prefer to hide this information. It is difficult to say how prices change on average in the market, but the rise in prices on popular portals is visible to the naked eye.
')
According to eMarketer, this year the total turnover of online advertising has grown by 31% to $ 16.4 billion. In America, 6% of all advertising is being posted online. Next year, online advertising should grow another 19% to $ 19.5 billion.
Interestingly, the same rapid growth of online advertising was observed in the late 90s during the dotcom boom. But experts emphasize that then the growth was due to irrational demand in the wake of venture investments, and now advertisers get real-world effects from online advertising that can be measured.
Along with overall growth, however, prices are declining in some segments. For example, there is a decline in prices for advertising video. In addition, experts note some price cuts on small sites, whose audience is not clearly expressed, that is, it is blurred by age and social groups.
Search advertising, which makes up 42.5% of the entire advertising market, is not so expensive. According to the company Fathom Online , over the past year, the average cost of a single transition through an advertising link has increased from $ 1.44 to $ 1.48.
According to experts, in 2007 the rise in prices will continue. Surveys of the largest advertisers show that almost all of them are going to increase spending on Internet advertising by 15–30% next year.
Source: https://habr.com/ru/post/4883/
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