US: Digital advertising market commentary

Market growth and evolution

Digital Insight Report - November 2007

US: Digital advertising market commentary: Market growth and evolution

The world’s largest online ad market is still enjoying the largest annual growth in real terms. Spend surged ahead by 25.4%, crossing the $5bn mark in a single quarter. Boosted in particular by massive increases in the supply of media from social networks, and the continued switch of acquisition budgets into search, the wider media sector is hurting as budgets are displaced and advertisers follow their audiences. The big changes are now starting.

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Comments (2)

Analyst: Danny Meadows-Klue:

The rise of video advertising is particularly interesting because as IPTV and web video start to take off we shoudl start seeing much larger percentages of the online display advertising pie get snapped up by video based content. There's likely to be a squabble about whether this is TV or Internet spending, but once IPTV starts accelerating in the US the spend should quickly dwarf those in Scandinavia and France where the IPTV and web TV use has historically been higher.

When the web and TV collide, new genres of advertising will be created. And with them some interesting hybrids on the models of web graphical formats that account for the lion's share of the 'display' online ad market.

David Berkowitz:

The online ad market keeps surging in the US, and there's been this virtuous cycle of advertisers allocating a larger share of their budgets online and online publishers offering new advertising options to accommodate them. Advertising through video, social networks, blogs, and mobile platforms keeps getting easier, and publishers are providing the metrics marketers need to make more educated decisions. We still have a long way to go before online advertising's market share is on par with the share of time people spend with online media, but we're also far past the point where online is just the tail wagging the dog.

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