Online Advertising to See Major Growth in 2006
Online Advertising to See Major Growth in 2006 January 1, 2006 - Linknet Business News Online Advertising Estimates up for 2006 Online advertising has been growing steadily for the last decade, and 2006 is expected to show significant growth again. In a recent report from Credit Suisse First Boston online advertising estimates were raised for the fourth quarter of 2005 and all of 2006. This is based on a survey of marketers and major advertisers who say they intend to increase their online ad spend by as much as 30 percent. The 2006 CSFB forecast for the fourth quarter of 2005 was raised by 37% to $3.7 billion, while the 2006 forcast was raised from $ 4.9 billion to $16.6 billion. This 21 percent increase reflects plans by advertisers to shift more ad dollars than previously expected to online media. "We're seeing a shift to a more diverse set of media choices," said Mary Baglivo, chief executive officer of the New York office of advertising agency Saatchi & Saatchi. "Certainly a move away from what had traditionally over the years been the vast majority television and print." The two most popular types of online ads in 2006 will remain sponsored links and display ads. But industry forecasters think display ads will be the slowest growing as rich media advertising gradually replaces banner ads. Promote Your Real Estate Website Major TV networks putting more shows online 2005 was the year that major TV networks started to seriously dabble in online TV programming. In October, ABC began to sell downloads of complete, ad-free episodes of top shows like "Lost" and "Desperate Housewives,". Some think this signals the advent of the long-predicted convergence of TV and online. Since October, several other networks have made shows available through a joint agreement with iTunes. These include Disney, NBC Universal, Sci Fi Channel, and USA Network. Now CBS is using online distribution to promote two popular comedies "Two and a Half Men" and "How I Met Your Mother." The network will make two complete episodes of each of the Monday night sitcoms available for one week in a deal with Yahoo! The promotion is called the "CBS Comedy Bowl." Both half-hour shows, were broadcast earlier in the season, and will be streamed ad-free in Yahoo!'s video player. The video player is available from Yahoo! TV. Yahoo TV features TV listings and show previews and is gradually adding new video content. "We want to be where the viewers are, and this exclusive partnership with Yahoo! gives us the chance to target an expanded online audience for 'Two and a Half Men' and 'How I Met Your Mother' at a time of the year when many potential viewers are home on vacation and surfing the Internet," Nancy Tellem, president of the CBS Paramount Network Television Entertainment Group, said in a statement. Previous CBS initiatives included a September effort with Google to stream its "Everybody Hates Chris" premiere. Then in October, CBS made audio podcasts of select shows available on iTunes. These include "Survivor Live", "60 Minutes," "Guiding Light," and "NFL Hot Topic." Earlier in 2005, AOL launched In2TV, a more aggressive broadband video network that will offer episodes of more than 30 classic TV series. Offerings will be available in January and will carry 15 and 30 second video ads. Promotion of this service was one of the major reasons behind the renewed Google/AOL partnership. Online Video and Marketing Online advertising to grow by 25% per year, report says JMP Securities has issued a revised forecast for global online advertising. B2B Online reports that they are now projecting an annual growth rate of 25 percent in the next five years. Total online advertising speding is predicted to reach $65 billion by 2010. The JMP prediction for the U.S. is $ 13.2 billion in 2006. That would be 4.7% of total advertising revenue for the year. By 2010 it is expected that online advertising will increase to $35.9 billion -- 11.1% of all advertising spending. Those numbers are expected to soar by 2010, when the U.S. online ad market is expected to reach 11.1 percent of all adspend, and an increase of more than 25% per year. "We expect large-budget advertisers to continue shifting an increasing percentage of their traditional ad budgets to the internet," JMP analyst William Morrison said. A growing proportion of new advertising revenue will come from rich media as major advertisers adapt already existing advertising to online media.
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