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Monday, September 25, 2006

US Online Ad Spending Continues to Soar!

Posted by @ 4:07 pm

The latest figures released by Interactive Advertising Bureau and PriceWaterhouseCooper (source: report that US Internet Advertising revenue for the first half of 2006 was 37% higher than the first half of 2005. This equated to a spend of approximately $US7.9 billion.

The second quarter of 2006 saw Internet advertising revenue reach almost US$4.1 billion, which alone was a 5.5% increase on the spend in the first quarter of 2006.

According to Peter Petrusky of PriceWaterhouseCooper, “With the seventh consecutive quarter of growth behind us we are confident that the Internet will continue to reconcile the imbalances between its share of media consumption versus its relative share of total advertising spend.”

While search marketing continues to dominate advertising budgets with about 40% of the total spend, Referrals/Lead Generation and Classified Advertising (3rd overall) increased their share over the same period.

CPM or Cost per Impression advertising models were the preferred pricing model, nudging out performance based models like “pay-per-click”. This preference is reinforced by the documented move by bigger companies to use search for branding purposes above and beyond direct sales/leads. For a full run-down of the report, visit

Rene LeMerle Rene is the marketing manager of - a global search engine marketing company. He also leads the marketing for - a web 2.0 style community for online and digital marketers. Rene has been in the industry since 1997 with much of that time spent helping businesses embrace the best of the internet and digital world.

View Rene LeMerle's profile

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