US Internet ad revenues reach $11.5 bln in the first half of 2008

US Internet advertising revenues in January-June 2008 were $11.5 bln, setting yet another new half-year record that represents a 15.2% increase over the first half of 2007. Q2 2008 was up 12.8% over Q2 2007 and showed a slight decline of 0.3% from Q1 2008. Search revenues totaled almost $5.1 bln for the first six months of 2008, up 24% from the $4.1 bln for the same period in 2007. Display-related advertising totaled close to $3.8 bln for first six months of 2008, compared to the $3.2 bln reported for the same period in 2007, showing about a 19% increase. Display-related advertising includes Display Banner ads, Rich Media, Digital Video, and Sponsorship, IAB says.

Negative ads up 100% in 2008 so far

Kearsarge Global Advisors says that so far in 2008, $20,826,032 have been spent on 55,019 spots in 33 states, along with minimal national cable placements. Year-to-date spending increased more than 100% in the first three weeks of September. From September 1st through the 23rd, campaigns spent $10,872,849, as compared to $9,953,183 in the prior eight months combined. KGA initially forecast that a minimum of $66 mln will be spent on negative ads related to issues such as outsourcing, tax breaks, trade with China, NAFTA/CAFTA, foreign ownership, and “unfair” trade policies.

Growth of display ads by industry

Industry Estimated Spend Q2 2007 Estimated Spend Q2 2008 % Change
Financial Services $1,513,499,500 $1,107,215,800 -27%
Web Media $903,731,700 $ 895,871,500 -1%
Retail Goods & Services $657,760,600 $611,790,900 -7%
Telecommunications $541,705,300 $512,837,800 -5%
Automotive $208,170,300 $301,249,900 45%
Consumer Goods $221,238,600 $292,940,800 32%
Entertainment $140,266,100 $206,145,600 47%
Travel $201,209,900 $202,603,900 1%
Public Services $303,526,000 $189,192,800 -38%
Hardware & Electronics $123,106,500 $146,290,800 19%
Source: Nielsen

Top health sites by ad placements

Publisher Display ads, mln. Share of Display
Ads
Visitors, 000 Frequency
Health – Information 1,556 100.0% 53,556 29.0
WebMD Health 290 18.6% 14,992 19.3
Revolution Health 201 12.9% 8,320 24.1
AOL Health 186 12.0% 8,780 21.2
Everyday Health 154 9.9% 10,355 14.8
MSN Health 109 7.0% 7,751 14.1
About.com Health 98 6.3% 7,242 13.5
LIFESCRIPT.COM 92 5.9% 3,406 27.0
Weight Watchers 61 3.9% 1,962 31.0
Yahoo! Health 59 3.8% 7,902 7.5
AARP Sites 34 2.2% 1,696 20.3
Source: comScore

Top display advertisers in June 2008

Advertiser Pageviews, mln. Share of Display Ads Unique Visitors, 000
Total Internet 329,828 100.0 180,571
Microsoft 5,529 1.7 126,367
University of Phoenix 4,722 1.4 120,475
Experian Interactive 3,968 1.2 137,915
United Online, Inc 3,929 1.2 136,329
Verizon 3,818 1.2 130,839
AT&T, Inc. 3,802 1.2 134,341
Deutsche Telekom 3,594 1.1 129,951
Vonage 3,368 1.0 132,964
Netflix 3,146 1.0 134,554
Ask Network 2,852 0.9 102,565
Source: comScore

Top display ad sites in June 2008

Publisher Site Ad impressions, mln. Share of Display Ads Visitors, 000
Total Internet 329,828 100.0 180,571
Fox Interactive Media 52,288 15.9 83,714
Yahoo! Sites 34,675 10.5 130,680
AOL LLC 19,004 5.8 96,512
Microsoft Sites 15,485 4.7 87,667
Google Sites 5,075 1.5 81,885
FACEBOOK.COM 3,650 1.1 30,723
eBay 3,512 1.1 52,238
Viacom Digital 3,114 0.9 36,382
COMCAST.NET 2,644 0.8 11,860
Glam Media 2,237 0.7 33,462<
Source: comScore

Top online apparel advertisers in April 2008

Advertiser Impressions, 000 Share Voice Visitors, 000 Frequency
American Apparel 483,389 24.1% 48,887 9.9
UnderArmour.com 311,528 15.5% 50,862 6.1
SnorgTees.com 249,214 12.4% 34,009 7.3
L.L. Bean, Inc. 205,590 10.3% 39,781 5.2
LaneBryant.com 141,981 7.1% 22,645 6.3
Nordstrom.com 94,206 4.7% 19,822 4.8
Spiegel Inc 90,212 4.5% 7,461 12.1
Giorgio Armani 81,724 4.1% 10,645 7.7
Levi Strauss & Co. 72,259 3.6% 18,825 3.8
BustedTees.com 64,088 3.2% 19,425 3.3
Nike 60,573 3.0% 18,440 3.3
NFLShop.com 57,199 2.9% 6,255 9.1
Endless.com 47,288 2.4% 11,630 4.1
Skechers.com 45,847 2.3% 9,358 4.9
Source: comScore

74% of all e-mail in Q2 2008 was spam

In Q2 2008, 74% of all mail received was spam. In Q2 2008, Turkey became the country with most zombie computers (11% of the global total), followed by Brazil (8.4%) and Russia (7.4%). The USA, which in the Q1 2008 accounted for 5% of all zombies, is now in ninth place with just 4.3% of the total. Google Adwords has been at the center of one of the most notable attacks over the last quarter, PandaLabs says. This Google service had been used previously to launch phishing attacks and the trend continues. This type of attack uses social engineering to trick users into revealing confidential details (bank account numbers, passwords, etc.).

Top Russian Internet advertisers: Ford, MTS, Megafon, GM, Vympelkom

Mindshare Interaction published a list of top advertisers in Internet sector in Russia Federation, compiling the data for the first half of 2008. Ford Motor Co led the way with $4.6 mln spending, followed by Russian mobile operators MTS and Megafon, then by US automaker General Motors, another mobile operator Vympelkom OAO, automakers PSA Peugeot Citroen, Nissan, electronics conglomerate Samsung, Honda and Procter & Gamble. Total Internet spending by top 10 advertisers in .ru sector of the Internet spent $20 mln total in the first 6 months of 2008.

30% of online ads was sold through ad networks in 2007

The use of ad networks surged from 5% of total ad impressions sold in 2006 to 30% in 2007, according to Interactive Advertising Bureau. As online publishers continue to experience growth rates of 20-30% in ad revenue, the race to create new advertising opportunities has left publishers with an excess of inventory which they are selling through ad networks at up to 90% discounts versus direct sales rates. The study finds the trend particularly foreboding for branded online publishers who traditionally earn between $10-20 CPM (the industry term for the cost per 1,000 ad impressions advertisers pay) and therefore risk severe price erosion. Online publisher revenues grew by a healthy 32% in 2007 versus 2006, yet ad network revenues grew more rapidly (in excess of 50%), as marketers boosted online spending. High demand for premium video inventory resulted in CPMs 2-3 times greater than display ads on average.

Top US search sites in May 2008

Expanded Search Entity May-08 Jun-08 Growth, MTM
Total Expanded Search 15,463 16,668 8%
Google Sites 8,838 9,601 9%
Google 6,814 7,277 7%
YouTube/All Other 2,024 2,324 15%
Yahoo! Sites 2,387 2,570 8%
Yahoo! 2,352 2,530 8%
All Other 35 40 14%
Microsoft Sites 963 1,102 14%
MSN-Windows Live 932 1,069 15%
Microsoft/All Other 31 33 6%
AOL LLC 831 792 -5%
AOL Search Network 456 430 -6%
MapQuest/All Other 375 362 -3%
Ask Network 489 506 3%
Ask.com 321 341 6%
MyWebSearch.com/ All Other 168 165 -2%
Fox Interactive Media 402 457 14%
MySpace 395 448 13%
All Other 7 9 29%
eBay 449 444 -1%
Craigslist.org 314 342 9%
Facebook.com 121 157 30%
Amazon Sites 141 152 8%
Source: comScore

Worldwide spending on Internet ads will total $65.2 bln in 2008

Worldwide spending on Internet advertising will total $65.2 bln in 2008, which represents nearly 10% of all ad spending across all media. With IDC’s Digital Marketplace Model and Forecast projecting 15-20% annual growth throughout the forecast period, this share will reach 13.6% by 2011 as Internet ad spending grows to $106.6 bln worldwide. The United States will lead the world in both total advertising spending and online ad spending throughout the forecast period with expenditures of more than $265 bln and $45 bln respectively in 2011, according to IDC.

Central European ad market to grow 42.1%

Central and Eastern Europe (CEE) and the Middle East and Africa (MEA) will experience the fastest growth in Internet ad spending during the forecast period with a CAGR of 42.1% for CEE and 29.8% for MEA. Online advertising in Asia/Pacific (excluding Japan) will also experience dramatic growth with a 2007-2011 CAGR of 25.4%. Internet advertising will make the greatest gains relative to total ad spending in Western Europe, where online ad spending will capture 18.2% of total ad spending in 2011. This compares to a 16.3% share for online ad spending in Japan and 14.6% in the United States. More than $5 bln will be spent worldwide in 2008 in each of the top four categories of online ads – adult content and gambling, information, electronics, and computing. These will continue to be the leading categories in 2011, according to IDC.

Top ad carriers in June 2008

Rank Property Audience, 000 Reach %
Total Internet 189,873 100%
1 Platform-A 170,312 90%
2 Yahoo! Network 158,064 83%
3 Google Ad Network 154,419 81%
4 Specific Media 148,311 78%
5 ValueClick Networks 141,915 75%
6 Yahoo! 138,426 73%
7 Tribal Fusion 137,569 72%
8 YuMe Video Network 134,864 71%
9 Google 131,697 69%
10 Casale Media Network 128,569 68%
11 adconion media group 125,339 66%
12 DRIVEpm 122,373 64%
13 interCLICK 118,905 63%
14 Traffic Marketplace 116,267 61%
15 AOL Media Network 110,841 58%
16 24/7 Real Media 109,135 57%
17 MSN-Windows Live 107,272 56%
18 Tremor Media 101,361 53%
19 ADSDAQ by ContextWeb 98,951 52%
20 CPX Interactive 88,911 47%
21 Turn, Inc 87,681 46%
22 Burst Media 84,246 44%
23 AdBrite 81,133 43%
24 Centro 76,733 40%
25 MYSPACE.COM 72,777 38%
26 Collective Media 72,390 38%
27 Vibrant Media 72,080 38%
28 Ybrant – Oridian – ADdynami 71,554 38%
29 NNN Total Newspapers: U.S. 67,530 36%
30 Gorilla Nation Media 66,866 35%
31 Undertone Networks 65,945 35%
32 YOUTUBE.COM 65,482 34%
33 MSN.COM Home Page 56,741 30%
34 EBAY.COM 56,698 30%
35 TattoMedia 56,616 30%
36 IAC Ad Solutions 53,385 28%
37 Ask Network 51,646 27%
38 Kontera 50,216 26%
39 MapQuest 48,422 26%
40 PrecisionClick 46,681 25%
41 AMAZON.COM 46,666 25%
42 NNN Top 25 44,926 24%
43 Business.com Network 44,709 24%
44 Real Cities Network 44,577 23%
45 IB Local Network 40,506 21%
46 FACEBOOK.COM 37,375 20%
47 Quadrant One 37,347 20%
48 EBAY.COM Home Page 37,061 20%
49 The Nabbr Network 37,039 20%
50 Clearspring Widget 36,495 19%
Source: comScore

20% of television viewing now occurs online

IMMI has found that up to 20% of episodic content viewing occurs online, depending on the genre of the content and the amount of time the show has been on the air. The most common observation are panelists who first watch a television show live then watch at least one episode later online (41%). The second largest group for this particular network were those who first watch a show delayed then online (31%) at a later date.

Comparing online viewers to live viewers we see that the two largest groups are 25 to 44 year olds making up 58.4% of online viewers. While the common belief is 13 to 24 year olds are the ones consuming online episodic content, we find the exact opposite is the case with only 19.1% of 13-24 year olds viewing primetime shows online.

Looking at gender we see there is a slight shift with females (55%) more inclined to watch primetime episodes online than males (45%). After investigating live primetime viewing we see an equal distribution of males to females.

Primetime network shows are primarily consumed online by Caucasians (76.8%), with Hispanics being the second largest group at 10.5%. Caucasians are 21% more likely to watch episodes online. African Americans are less than half as likely to watch episodes online. There is no noticeable difference among Asians.

When analyzed viewership by income groups we see that online viewers are more affluent than live network primetime viewers. For those who earn $40,000 a year or less are 75% more likely to watch a primetime network show live than online. Those households that earn $80,000 a year or more are 56% more likely to watch a network show online.

Top online ad campaigns by fast food chains

Advertiser Ad views, 000 Share of ads Unique ad viewers, 000 Frequency
McDonald’s 295,884 33.6% 51,897 5.7
Quiznos.com 98,041 11.1% 16,390 6.0
KFC.com 84,974 9.6% 12,620 6.7
PapaJohns.com 82,298 9.3% 17,115 4.8
Subway 8,150 8.9% 15,478 5.0
Dunkin’ Brands 71,713 8.1% 23,240 3.1
PizzaHut.com 60,327 6.8% 15,366 3.9
SonicDriveIn.com 45,064 5.1% 7,070 6.4
Wendy’ 43,344 4.9% 11,280 3.8
Burger King 21,493 2.4% 3,494 6.2
Source: comScore

Google has 77.4% of US search ad market

For every new $1 spent on paid search in Q2 2008 versus Q2 2007, $1.10 went to Google. Yahoo lost $0.09, and Microsoft lost $0.01. Advertisers are putting all of their new search dollars into Google, and pulling money out of Yahoo Search and Microsoft Live Search, Efficient Frontier says. Google maintained its 77.4% share of US search marketing dollars, while Yahoo captured 17.8% of spending and Microsoft Live Search maintained its 4.8% share.

Magazine ad revenues down 3.1% in the first half of 2008

Total magazine rate-card-reported advertising revenue for the first half of 2008 closed at $11,554,569,406, posting a -3.1% decline against the previous year, according to Publishers Information Bureau. Ad pages during Q1 2008 totaled 108,924.13, at -7.4% compared to January through June, 2007. Total PIB revenue for Q2 2008 closed at $6,297,123,700, marking a decline of -4.7% versus Q2 2007. Ad pages totaled 58,744.77, at -8.2% against Q2 2007.

Top US advertising carriers in May 2008

Rank Property Visitors, 000 Reach %
Total Internet : Total Audience 190,858 100.0
1 Platform-A 172,422 90%
2 Advertising.com 170,722 89%
3 Yahoo! Network 163,626 86%
4 Google Ad Network 158,514 83%
5 Specific Media 150,336 79%
6 ValueClick Networks 145,884 76%
7 Tribal Fusion 141,908 74%
8 Yahoo! 141,023 74%
9 Google 35,390 71%
10 Casale Media Network 129,752 68%
11 adconion media group 124,760 65%
12 DRIVEpm 123,601 65%
13 Traffic Marketplace 121,781 64%
14 interCLICK 114,506 60%
15 24/7 Real Media 113,626 60%
16 AOL Media Network 111,395 58%
17 MSN-Windows Live 107,710 56%
18 ADSDAQ by ContextWeb 104,152 55%
19 Tremor Media – Media Partners 103,653 54%
20 Burst Media 89,450 47%
21 Collective Media 84,129 44%
22 AdBrite 83,731 44%
23 Centro 82,215 43
24 CPX Interactive 77,459 41
25 Vibrant Media 76,155 40%
26 Turn, Inc 74,879 39%
27 MySpace.com 73,691 39%
28 NNN Total Newspapers: U.S. 71,398 37%
29 Undertone Networks 70,605 37%
30 YouTube.com 66,218 35%
31 Gorilla Nation Media 66,152 35%
32 Quigo 65,816 34%
33 Ybrant Digital- AdDynamix/Oridian 65,642 34%
34 eBay.com 63,238 33%
35 IAC Ad Solutions – Media Partners 58,157 30%
36 MSN.com Home Page 57,169 30%
37 Ask Network 54,563 29%
38 Kontera 53,936 28%
39 MapQuest 48,879 26%
40 NNN Top 25 48,660 25%
41 Real Cities Network 48,213 25%
42 IB Local Network 47,668 25%
43 Amazon.com 47,446 25%
44 YuMe Video Network 46,823 25%
45 PrecisionClick 46,461 24%
46 Business.com Network 46,228 24%
47 Userplane 44,543 23%
48 Vizi Inc 44,542 23%
49 The Nabbr Network 40,512 21%
50 About 40,301 21%
Source: comScore

How dependent are sites on search engines in May 2008

Category Traffic from search engines Growth of search engine traffic Traffic from Google Growth of traffic from Google
Health and Medical 45.76% 3% 30.86% 5%
Travel 34.81% 11% 24.26% 21%
Shopping and Classifieds 25.48% 2% 16.84% 8%
News and Media 21.70% 7% 14.53% 10%
Entertainment 24.33% 17% 15.76% 22%
Business and Finance 18.15% 14% 11.73% 22%
Sports 13.09% 17% 8.81% 24%
Online Video 29.94% 37% 20.78% 52%
Social Networking 16.50% 18% 9.98% 21%
Source: Hitwise