Internet Babel

Recent figures show that the 2008 online advertising spend in the US showed an increase of over 10% on 2007, despite the Financial Crisis that was beginning to take hold in the latter part of the year.

2008 US revenue (MOT Worldwide, just the US) came to a record $23.4 billion, surpassing 2007′s record of $21.2 billion by 10.6 percent.

The figures indicate a continuing shift from traditional to online modes of advertising, and a realisation that online provides a more targeted and measurable approach, which can be important when every advertsing dollar needs to be accounted for.

Search related advertising kept its position as the main player, accounting for almost half of the total spend, with an almost 20% increase over 2007. ‘Direct’ advertsing is also growing.

The largest vertical markets were, as in 2007, retail, financial services, computing and automotive.

The full article can be read  here:
http://www.webpronews.com/topnews/2009/03/30/online-ad-revenue-up-106
Some points that arise from this article:

• Given that Search showed such a healthy increase in spend, this didn’t seem to be reflected in Adsense publisher’s incomes. This is anecdotal evidence of course, and there are always some publishers/sites who can show good growth but from looking around on the forums it certainly seems that the increase didn’t generally make it through to Adsense publishers’s wallets.
• It could well be that the increased spend was spread more thinly over the ever increasing amount of Web Real Estate, or inventory. More sites, more advertsing spots, more spend but distributed across an ever increasing pool of publishers.
• If that is the case, then will there be a ‘saturation point’ where the amount of available Web Inventory becomes just too big? Will the growth in advertising outstrip the growth in available traffic, and returns start to flatten out naturally?
• If the online spend is being spread ever thinner, that only goes to highlight the importance of providing something different, regular site reviews, updates & changes (unlike this site recently – haha) and effective SEO to make a site stand out.
• Is it going to be better to run loads of sites to try and catch some of that thinly spread advertsing spend, or concentrate on a few key names that you can really push – and sell off the rest of your stable?
• Publishers should look more and more into ‘direct’ advertising (something that IM/MMO Bloggers in particular do anyway). Advertisers like PR and content, and the knowledge that traffic will be targetted, so activley pursue direct advertsing/sponsorship opportunities for all your sites.
• Only park domains when you have to. Parking can be good as a holding option, but you’re getting an even smaller slice of that spend when you do it. Review your parked domains, pick the best potential ones (through keyword analysis, seacrh temrs, parking stats etc) and stick a minsite on them, with a combination of static and RSS/Video type feeds. Throw Adsense, Adbrite or whatever floats your boat on there – you’ll see an increase over parking revenue, the chance of gaining some PR and backlinks, a growth in organic/search traffic – and open up the potential for adding direct advertising or selling the developed site on at a profit.

Just some thoughts.

Nice to be back