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Tuesday, July 28, 2009
Nearly four months after their U.S. counterparts released the figures, the IAB Canada announces that Internet advertising revenues in 2008 grew at a blistering 29% pace, to $1.6 billion.
Even as a proportion of population and the size of the economy, this is below where it should be relative to the U.S. figure of $23.4 billion (up 10.6%), but the rapid growth is encouraging.
2009 has posed challenges in all sectors of the economy thus far, but both IAB announcements point to digital advertising as a mainstay of the economy, with their respective spokespersons highlighting the ongoing secular shift to online that drives growth even through a recession.
In the U.S., Search and Classified combined make up 59% of total digital spend with display placing second at 33%; in Canada the figure clocks in at 68% for Search and Classified combined, with display coming second at 31%. Curious about email? While still an important customer relationship medium, it's only at 2% of overall digital marketing spend as a prospecting method. In Canada that business is nearly dead with it making up less than 0.2%.
New studies need to be added to this mix to account for the full infrastructure costs of developing website technology, testing response, creating content, etc. How big is the investment "gap" in this area? Do companies plan to budget sufficiently in these areas? Those are open questions as larger companies make plans to redeploy the savings realized by reducing inefficient traditional ad spends.Labels: iab, online advertising
Posted by
Andrew Goodman
Thursday, November 20, 2008
It's a bit surreal to juxtapose today's release from the IAB -- Internet Advertising Revenues for Q3 at $5.9 billion -- with Google's earnings release of last month, related to their Q3 earnings.
Since Google's revenues were $5.54 billion, you're apt to say: what the heck is going on here?
The IAB figures cover the U.S. only, of course.
But if you subtract Google's international revenues, their U.S.-only revenues for the quarter were all of $2.69 billion. So in the United States, this one company appears to be clocking about 46% of the revenues for the whole digital advertising sector. Twiddle a few knobs, and wait a quarter, and Google will be at around 50%. Among other things, you would imagine that this makes further acquisitions dicey for Google. One company moving from, say, 50% to 58% of share for an entire sector of such importance might make certain regulators nervous. (Not saying it's right, but that's sort of how the world works.)
Whether that's proof that Google is incredibly big, or the rest of the sector remains embarrassingly small given the gallons of ink devoted to it, I'll leave to your discretion. A third possibility is that display and other forms of online advertising have yet to reach the peak of efficiency achieved by Google's click auction.Labels: iab, online advertising
Posted by
Andrew Goodman
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