Oct 15 2008
First Half of the Year Saw Growth in Online Advertising
According to the Interactive Advertising Bureau (IAB) and the PricewaterhouseCoopers, online advertising experienced an increase in revenues for the first half of 2008. With a recorded revenue of $11.5 billion, the industry enjoys a 15.2% increase in sales as compared to the first half of 2007.
Compared to the second quarter of 2007, this year’s second quarter improved by 12.8%, although it manifested a slight decrease of 0.3% relative to the first quarter of 2008. Still, according to the report, “search revenues neared $5.1 billion, up 24% year-over-year. Display neared $3.8 billion, up 19%.â€
According to IAB president and CEO Randall Rothenberg, internet advertising is experiencing substantial growth every year because of the increased accessibility and reach of digital media. “The essentially flat performance we see quarter to quarter reflects in part cyclical advertising trends. Compared to the trajectory in other media and in the general economy, interactive has outperformed because it delivers a level of accountability unmatched by any other advertising medium.â€
The increase in sales revenue in online advertising is just one proof of how effective online media has become. Companies have taken to promoting their products and services through the internet to reach a wider client base and overcome the losses that they may have incurred in their land-based outlets. Many have wizened up and started providing their services through online outlets as well. The good thing about online promotions is that it incurred relatively lower expenditures as compared to other types of advertising.
One of the rules of advertising says to promote where the audience is. The increased accessibility of the internet has encouraged many consumers to maximize the potentials of the medium. They are starting to turn to the internet for practically anything that they need – be it banking, shopping or even for research. This made online advertising services become more in demand over the past several months.
In the next couple of months, the demand for search engine optimization services is still expected to increase as businesses will want to improve their online visibility to reach their targeted audience. Online marketers are faced with the challenge of catching up with trends and staying competitive through quality services.
