Category: Advertising

US Internet advertising revenues remain strong, topping $23 bln, according to Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC). Full-year 2008 revenues totaled a record $23.4 bln, exceeding 2007’s performance, itself the former record of $21.2 bln, by $2.2 bln or 10.6%. Q4 2008 revenues of $6.1 bln mark the first time the interactive advertising industry achieved, and surpassed, $6 bln in a single quarter. The figures represent a $154 mln or 2.6% increase from Q4 2007, which had revenues of $5.9 bln. This is the fifth consecutive year of record results.

Rank	Property	Unique Visitors (000)	Reach %
	Total Audience	191,863	100%
1	Platform-A	174,586	91%
2	Yahoo! Network	164,712	86%
3	ValueClick Networks	160,261	84%
4	Google Ad Network	158,481	83%
5	Traffic Marketplace	146,903	77%
6	Yahoo! Sites	146,131	76%
7	Specific Media	145,929	76%
8	Tribal Fusion	143,869	75%
9	Google	143,116	75%
10	24/7 Real Media	141,604	74%
11	Tremor Media – Potential Reach	136,867	71%
12	Casale Media – MediaNet	136,772	71%
13	Turn, Inc	132,949	69%
14	Adconion Media Group	130,717	68%
15	interCLICK	126,706	66%
16	CPX Interactive	125,764	66%
17	DRIVEpm	125,255	65%
18	ADSDAQ by ContextWeb	121,022	63%
19	Revenue Science	114,122	59%
20	Digital Broadcasting Group	111,698	58%
21	MSN-Windows Live	111,695	58%
22	Collective Network	111,322	58%
23	Burst Media	109,043	57%
24	AOL Media Network	108,441	57%
25	BrightRoll Video Network	98,179	51%
26	AdBrite	89,649	47%
27	YOUTUBE.COM	82,772	43%
28	Centro – Potential Reach	81,559	43%
29	Vibrant Media	79,908	42%
30	MYSPACE.COM	75,639	39%
31	NNN Total Newspapers: U.S.	74,800	39%
32	Ask Network	74,742	39%
33	Pulse 360	71,075	37%
34	Gorilla Nation Media	68,684	36%
35	IAC Ad Solutions	66,759	35%
36	Undertone Networks	66,083	34%
37	Career Ad Network	65,936	34%
38	ITN Digital Networks	65,705	34%
39	Kontera	64,928	34%
40	TattoMedia	61,677	32%
41	IB Local Network	58,414	30%
42	EBAY.COM	57,520	30%
43	Adify	57,380	30%
44	FACEBOOK.COM	57,232	30%
45	MSN.COM Home Page	56,481	29%
46	Glam Media	55,293	29%
47	AMAZON.COM	54,562	28%
48	NNN Top 25	52,326	27%
49	Business.com Network	51,586	27%
50	QuadrantONE	47,754	25%
Source: comScore

The global advertising market grew to just over $600 bln in 2007, according to The Kelsey Group. The firm expects global ad revenues to grow at a compound annual growth rate (CAGR) of 2.7% and reach $707 bln in 2012. Interactive advertising revenues will increase significantly from $45 bln in 2007 to $147 bln globally in 2012, representing a 23.4% CAGR. Interactive advertising, which comprises search (including local search), display advertising, classifieds and other interactive ad products, grew its share of global advertising revenues from 6.1% in 2006 to 7.4% in 2007. By 2012 Kelsey Group analysts expect the interactive share of global ad spending will reach 21%.

During the forecast period (2007-2012), the United States will see interactive advertising revenues grow from $22.5 bln to $62.4 bln (22.6% CAGR), with interactive revenues in Canada increasing from $1.3 bln to $3.3 bln (21.3% CAGR).

Rank	Property	Unique Visitors (000)	Reach %
	Total Internet	190,650	100%
1	Platform-A	173,804	91%
2	Yahoo! Network	165,879	87%
3	ValueClick Networks	159,420	84%
4	Google Ad Network	157,131	82%
5	Specific Media	153,079	80%
6	Traffic Marketplace	147,024	77%
7	Yahoo! Sites	145,708	76%
8	24/7 Real Media	142,448	75%
9	Adconion Media Group	142,133	75%
10	Google	141,044	74%
11	Tribal Fusion	139,778	73%
12	Tremor Media	137,407	72%
13	interCLICK	137,076	72%
14	Casale Media – MediaNet	136,806	72%
15	Collective Network	126,294	66%
16	Revenue Science	126,261	66%
17	DRIVEpm	126,158	66%
18	Turn, Inc	123,150	65%
19	CPX Interactive	118,305	62%
20	ADSDAQ by ContextWeb	117,025	61%
21	BrightRoll Video Network	114,333	60%
22	Burst Media	112,601	59%
23	MSN-Windows Live	112,223	59%
24	AOL Media Network	109,879	58%
25	AdBrite	87,826	46%
26	YOUTUBE.COM	81,926	43%
27	Centro – Potential Reach	79,294	42%
28	Undertone Networks	79,259	42%
29	Vibrant Media	78,370	41%
30	MYSPACE.COM	75,909	40%
31	Ask Network	73,267	38%
32	NNN Total Newspapers: U.S.	72,178	38%
33	IAC Ad Solutions	69,839	37%
34	Gorilla Nation Media	69,676	37%
35	EBAY.COM	62,738	33%
36	Kontera	62,340	33%
37	AMAZON.COM	62,081	33%
38	Glam Media	61,129	32%
39	Pulse 360	60,834	32%
40	ITN Digital Networks	60,060	32%
41	MSN.COM Home Page	56,543	30%
42	TattoMedia	56,284	30%
43	FACEBOOK.COM	54,552	29%
44	IB Local Network	53,461	28%
45	NNN Top 25	49,520	26%
46	Adify	48,974	26%
47	Business.com Network	47,695	25%
48	WALMART.COM	46,049	24%
49	YuMe Video Network	45,860	24%
50	QuadrantONE	44,940	24%
Source: comScore

Rank	Property	Visitors, 000	Reach, %
	Total Audience	190,775	100%
1	Platform-A	173,155	91%
2	Yahoo! Network	164,535	86%
3	Google Ad Network	159,387	84%
4	ValueClick Networks	157,444	83%
5	Specific Media	151,386	79%
6	Traffic Marketplace	142,510	75%
7	Yahoo!	142,007	74%
8	Tribal Fusion	141,412	74%
9	24/7 Real Media	139,189	73%
10	Google	138,870	73%
11	Casale Media – MediaNet	137,371	72%
12	Adconion Media Group	136,625	72%
13	Tremor Media	134,949	71%
14	interCLICK	128,033	67%
15	Revenue Science	126,600	66%
16	DRIVEpm	123,082	65%
17	Collective Media	118,796	62%
18	CPX Interactive	115,129	60%
19	MSN-Windows Live	111,610	59%
20	urn	111,227	58%
21	ADSDAQ	110,338	58%
22	AOL Media Network	108,785	57%
23	Burst Media	105,989	56%
24	AdBrite	88,203	46%
25	YOUTUBE.COM	80,406	42%
26	Centro – Potential Reach	77,207	40%
27	MYSPACE.COM	75,328	39%
28	Undertone Networks	75,027	39%
29	Vibrant Media	73,748	39%
30	NNN Total Newspapers: U.S.	73,231	38%
31	Ask Network	70,151	37%
32	Gorilla Nation Media	67,972	36%
33	IAC Ad Solutions	65,098	34%
34	Kontera	60,982	32%
35	Pulse 360	57,733	30%
36	MSN.COM Home Page	57,622	30%
37	EBAY.COM	56,775	30%
38	IB Local Network	55,438	29%
39	Glam Media	54,631	29%
40	AMAZON.COM	54,223	28%
41	TattoMedia	52,376	27%
42	NNN Top 25	50,836	27%
43	YuMe Video Network	50,798	27%
44	FACEBOOK.COM	50,511	26%
45	ITN Digital Networks	48,554	25%
46	Ybrant – Oridian – ADdynamix	48,099	25%
47	Business.com Network	46,487	24%
48	QuadrantONE	44,482	23%
49	WALMART.COM	43,940	23%
50	Intergi	43,406	23%
Source: comScore

Gartner predicts that by 2010, more than 60% of Fortune 1000 companies with Web sites will have some form of community that can be used for marketing purposes.

More than half of US consumers with Internet access use social networking services, and penetration will continue to grow. Consumers are also spending ever-greater amounts of time on SNS, a fact that has advertisers drooling over the opportunity represented by SNS. IDC found that consumers who use SNS also tend to visit the services often and spend a lot of time per visit. More than three quarters of SNS users visit at least once a week, and no less than 57% visit at least once a day. During each session, 61% of SNS users spend at least 30 minutes on the respective site or stay logged in permanently, and 38% spend at least one full hour per session (or stay logged in). There are four major reasons why consumers use SNS: to connect and communicate; in response to peer-pressure; for entertainment; and for work-related purposes. Advertising does not factor into consumer motivations. In fact, users are less tolerant of SNA advertising than the best tolerated forms of online advertising. Ads on SNS have lower click-through rates than traditional online ads (on the Web at large, 79% of all users clicked on at least one ad in the past year, whereas only 57% of SNS users did), and they also lead to fewer purchases (Web: 23%; SNS 11%).

Rank	Property	Audience, 000	Reach
1	Platform-A	173,713	91%
2	Yahoo! Network	164,080	86%
3	Google Ad Network	158,928	83%
4	ValueClick Networks	155,356	82%
5	Specific Media	150,176	79%
6	Tribal Fusion	144,354	76%
7	Yahoo!	143,089	75%
8	Traffic Marketplace	140,302	74%
9	Google	138,767	73%
10	24/7 Real Media	135,528	71%
11	Tremor Media – Potential Reach	135,222	71%
12	Casale Media – MediaNet	135,054	71%
13	Adconion Media Group	130,650	69%
14	YuMe Video Network	130,247	68%
15	interCLICK	129,477	68%
16	Revenue Science	127,186	67%
17	DRIVEpm	123,594	65%
18	Turn, Inc	117,016	61%
19	CPX Interactive	116,817	61%
20	Collective Media	113,336	59%
21	ADSDAQ by ContextWeb	113,320	59%
22	AOL Media Network	111,259	58%
23	MSN-Windows Live	110,615	58%
24	Burst Media	105,962	56%
25	AdBrite	90,165	47%
26	YOUTUBE.COM	80,877	42%
27	Centro – Potential Reach	80,225	42%
28	MYSPACE.COM*	76,257	40%
29	Vibrant Media	76,000	40%
30	NNN Total Newspapers: U.S.	74,797	39%
31	Undertone Networks	74,641	39%
32	Ask Network	70,449	37%
33	Gorilla Nation Media	68,483	36%
34	Kontera	64,468	34%
35	IAC Ad Solutions	64,422	34%
36	Pulse 360	60,430	32%
37	MSN.COM Home Page	57,617	30%
38	Ybrant – Oridian – ADdynamix	56,291	30%
39	EBAY.COM	55,436	29%
40	IB Local Network	54,747	29%
41	NNN Top 25	52,482	28%
42	TattoMedia	51,659	27%
43	ITN Digital Networks	51,633	27%
44	AMAZON.COM	49,102	26%
45	Business.com Network	47,322	25%
46	Intergi – Potential Reach	46,861	25%
47	QuadrantONE	46,233	24%
48	MapQuest	46,049	24%
49	FACEBOOK.COM	45,954	24%
50	AdOn Network	44,095	23%
Source: comScore

IAB and PricewaterhouseCoopers announced that Internet advertising revenues reached almost $5.9 bln for Q3 2008, representing an 11% increase over Q3 2007. While double-digit annual growth continues, the QTQ curve remains relatively flat compared to recent past performance. The Q3 2008 figures are 2% higher than the Q2 2008 results. Set against strong economic headwinds in the US economy, Q3 2008 $5.9 bln represents nonetheless the second-highest quarter results ever. For the first nine months of 2008, revenues totaled $17.3 bln, up from $15.2 bln in the same period a year ago and surpassing the record set in the first nine months of 2007 by nearly 14%.

1	Platform-A	171,692	91%
2	Yahoo! Network	161,996	86%
3	Google Ad Network	156,355	83%
4	Specific Media	153,435	81%
5	ValueClick Networks	150,395	79%
6	Tribal Fusion	141,850	75%
7	Yahoo!	140,200	74%
8	Google	136,219	72%
9	Traffic Marketplace	131,458	69%
10	YuMe Video Network	130,238	69%
11	24/7 Real Media	128,775	68%
12	Casale Media – MediaNet	128,585	68%
13	Tremor Media – Potential Reach	128,060	68%
14	Adconion Media Group	122,632	65%
15	interCLICK	121,987	64%
16	Revenue Science	120,899	64%
17	DRIVEpm	113,162	60%
18	CPX Interactive	111,847	59%
19	ADSDAQ by ContextWeb	109,570	58%
20	Collective Media	109,489	58%
21	MSN-Windows Live	109,274	58%
22	AOL Media Network	108,349	57%
23	Burst Media	101,493	54%
24	Turn, Inc	101,462	54%
25	Undertone Networks	85,722	45%
26	Centro – Potential Reach	83,921	44%
27	AdBrite	79,853	42%
28	YOUTUBE.COM	75,389	40%
29	NNN Total Newspapers: U.S.	73,880	39%
30	Vibrant Media	73,323	39%
31	MYSPACE.COM	73,035	39%
32	Gorilla Nation Media	64,303	34%
33	Ask Network	62,101	33%
34	Kontera	58,809	31%
35	Pulse 360	58,559	31%
36	MSN.COM Home Page	57,457	30%
37	EBAY.COM	55,476	29%
38	ITN National Broadband Networks	54,905	29%
39	Ybrant – Oridian – ADdynamix Network	53,993	28%
40	IB Local Network	53,645	28%
41	IAC Ad Solutions – Potential Reach	52,405	28%
42	NNN Top 25	51,222	27%
43	Intergi – Potential Reach	48,929	26%
44	Business.com Network	47,174	25%
45	QuadrantONE – Potential Reach	46,403	24%
46	AMAZON.COM	45,980	24%
47	TattoMedia	44,894	24%
48	MapQuest	44,588	24%
49	AdOn Network	43,719	23%
50	NNN Top 10	42,032	22%
Source: comScore

How Men Respond to Online Advertising: 59% notice online ads; 47% have purchased as a result of an online ad; 35% like ads that allow them to play a game; 34% like online ads that allow them to participate in a contest, according to Break Media.

In Q2 2008, newspaper Web sites revenue was down 2.4% compared with Q2 2007, to $777 mln, according to the Newspaper Association of America. It was the only YTY drop since the association began measuring online revenue in 2003.