By Durk Price
If you’re anything like me, you see a lot of market research data. Recently, I ran across some interesting and optimistic reports. The numbers varied in terms of the overall size of the Internet advertising marketing but the forecast for growth in each study was music to my ears.
According to a forecast from ZenithOptimedia the Internet will overtake newspapers to become the world’s second-largest advertising medium in 2013. Newspaper ad expenditure was still 51percent larger than Internet ad expenditure in 2010, but newspaper expenditure is shrinking by 1.4 percent a year, as circulations continue to fall in developed markets, and readers migrate online.
Meanwhile, this report claims that Internet advertising continues to grow at a forecast average rate of 14.4 percent a year between 2010 and 2013. Internet ad expenditure is expected to reach $94.5 billion over the same by 2013, up from $63 billion in 2010.
The report claims that this year display advertising has taken over from search as the main driver of Internet ad growth – mainly due to affordable, do-it-yourself tools to create streaming video ads that have opened online video to small and local advertisers.
Last week, the IAB released its annual report on Internet Advertising, which showed record Internet advertising revenues of $26 billion, up 15 percent from 2009.
And while the report from ZenithOptimedia pegged display ads the main driver of growth, the IAB study showed that the most popular format in 2010 was search which represented 46 percent of revenue and saw 12 percent growth from 2009. Still, display-related advertising did total nearly $10 billion – an increase of 24 percent over 2009, according to the IAB report.
I was also thrilled to see that the Performance-based pricing model remains the top pricing model since 2006, reaching 62 percent in 2010, up from 59 percent. CPM/Impression based pricing has declined as a percentage of revenue over the past several years, falling from 37 percent to 33 percent, while Hybrid pricing has seen the greatest loss in percentage revenue over the period. Hybrid models rose to 5 percent from 4 percent in 2009, but that is still down from its high of 17 percent in 2004.
And while it’s often dizzying to wrap my head around so much data and so many different surveys and reports that come out each week, it’s certainly exciting to see that performance marketing continues to be a viable and growing channel.