Online Advertising Expenditure Report and Forecast
A breakdown of how spending is distributed for online advertising.

Online Advertising Expenditure Report and Forecast

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The Great Advertising Split

Is your advertising budget unlimited? Probably not. Where does your money go? Here are a few of the possibilities with global 2011 estimations in billions of dollars:

  • Television $190
  • Newspapers $93
  • Internet $72
  • Magazines $43
  • Radio $33
  • Outdoor $31

  • This all adds up to an awful lot of dollars and opportunities. Final 2011 figures are anticipated to show a 4.2% increase.

    The United States portion of this pie is estimated in the 1.5 billion range. But the spectrum of that share is changing. The internet continues to show increasingly that it is the place to go with ad dollars.

    Let’s look at some figures for online ad revenues and their continued growth again in billions of dollars:
  • 2005 - $12.5
  • 2006 – $16.9
  • 2007 - $21.2
  • 2008 - $23.5
  • 2009 - $22.7 – recessionary changes nation and worldwide
  • 2010 - $26.0 – recovered with a kick start
  • 2011 - $28.5 – or more is anticipated
  • 2011 first quarter climbed 23% over the previous year (highest ever Q1).

  • The growth rate of online spending is growing exponentially without an end in sight. As the internet, advertisers, and consumers become savvier and evolve the writing is on the wall (or more aptly put, on the computer screen).

    In a survey of 800 agencies, digital services were reported to be responsible for 28% of revenue in 2009. This was a jump of almost 3%. On an interesting note, it was found that 60% of this was from digital-specialty agencies.

    So what does that mean to you and where do those online ad dollars get the most bang for the buck?
  • Social networking sites – 10% of online spending advertised here.
  • Boutique social media agencies – 59% of advanced companies go here.
  • Traditional advertising agencies – 35% of advanced go here.
  • Social media users – 25% connect with companies online and 80% of those do it on Facebook.

  • How do the Internet advertising dollars lay out? This tells you where the bigger spending dollars go.

    Search and display are the way

  • Search spending 46%
  • Spending on display advertising 24%
  • Shrinking classified spending 10%
  • Rich media 6%
  • Leads & Video 5% each
  • Sponsors 3%
  • Email 1%

  • So who owns the major piece of this online ad property? Google and Yahoo and their subsidiaries are major players in the top 10 online ad property rankings, but Facebook has now come into the Top 10 rankings for the first time at 72.3%. With the social media connections between users and companies on the rise, this force cannot be denied.

    Further facts on YouTube, mega dollars, and video you might find interesting:
  • YouTube most-shared videos in 2011 began as Super Bowl ads.
  • Coca-Cola, in 2010, cut their ad spend to invest more in social media.
  • 1.7 billion minutes of video ad viewing in one month hits 45% of Americans.
  • Hulu owns 1.1 billion ad views of the total 4.3 billion in January.

  • Bottom line is

  • Internet ad spending lags in comparison to the amount of time Americans are connected online and mobile.
  • Advertisers are still spending much less to reach this audience. Cents for hours spent:
  • - 53 for newspapers
    - 12 for internet
    - 1 for mobile

    Opportunity abounds. How do you tap into it best?

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