How To Split An Atom

For anyone who was still on the fence as to whether online advertising was here to say, here is a bit of information. According to a study conducted by the private equity firm Veronis Suhler Stevenson, by the year 2011 internet advertising spending will reach $61.98 Billion, surpassing newspapers and becoming the nation’s leading medium.

The Metrics

Some additional metrics to consider are that,

• Ad spending on pure-play Internet sites reached $15.1 billion for 2006, and is projected to hit $34.78 billion in 2011, for a CAGR of 18.2%.
• Growth of 25.79% is projected for ad spending on traditional media-based Internet sites, which hit $8.585 billion in 2006, and is projected to reach $27.2 billion in 2011.
• National Internet advertising, which includes search, display, sponsorships, etc., is projected to remain the dominant dollar-generator with $38.897 billion forecast for 2011, representing an 18.2% CAGR from 2006-2011.
• Blog, podcast and RSS advertising is projected to reach $1.138 billion by 2011, registering the fastest growth rate at a 70.9% CAGR forecast from 2006-2011.

Web 2.0 Roundup

Where will all of this spending go? It’s unlikely to be funneled into traditional banner advertising. As the range of internet ad models expand, the types of ads will become substantially more varied. It’s a fair bet that advertorials and sponsorships will increase in popularity and campaigns that leverage the conversational nature of the web will become more common.

Exactly where advertising is going, it’s impossible to predict but this study raises a point that brand managers would do well to notice. The web is here to stay, and your future is in learning how to use it.

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