Sep242007

Online Ad Spending Kicks All Other Media’s Asses

I’m surprised that I haven’t seen this mentioned within the SEO blogosphere (and if it has been mentioned, I didn’t see it… so you didn’t do a very good job 😛 )…

According to The Nielsen Company, the overall advertising spending in the U.S. dropped by 0.5% for the first half of 2007 (compared to the first half of 2006). However, internet ad spend grew by 23.2%, which is the strongest performance by any media category!

(By the way Nielsen, there’s a typo in your article… it says “+23.6%” in the first paragraph instead of the 23.2% that’s shown in the table, as well as the PDF.)

The next strongest performance was delivered by National Magazines which only lost by 14.8 percentage points with a whopping 8.4%!

Check it out:

Media Category

First Half 2006 vs. First Half 2007
% Change

Internet*

23.2%

National Magazines

8.4%

Nat’l Sunday Supplements

6.5%

Outdoor

5.1%

Spot TV Markets 101-210

3.2%

Spanish-Language TV

0.2%

Cable TV

-0.3%

Spot Radio

-1.8%

Network TV

-3.8%

Spot TV Markets 1-100

-4.6%

Local Sunday Supplements

-4.7%

Local Magazines

-5.2%

B-to-B Magazines

-5.7%

Nat’l Newspaper

-5.9%

Local Newspaper

-8.0%

Network Radio

-8.5%

Total Advertising Spending

-0.5 %

Source: Nielsen Monitor-Plus
* Internet data provided by Nielsen//NetRatings AdRelevance

Not to mention, there are notes in the article that state:

Nielsen//NetRatings AdRelevance service estimated online advertising expenditures account for CPM-based image-based advertising. All reported estimated expenditures and impressions do not account for the following placement types: text only, paid fee services, performance-based campaigns, compound ads, sponsorships, barters, in-stream (“pre-rolls”) players, messenger applications, partnership advertising, promotions and email campaigns. AdRelevance currently does not report estimated spending for paid search advertising.

Now, I’m not sure if I’m reading it right (it’s 3:07am right now and I’ve read over the above the quoted paragraph at least 5 times), but it sounds like they didn’t even count a bunch of other types of online ads, including paid search!

I suppose that could mean the performance of other types of online ads could be either + or -, but I’m willing to bet that most other types of online ads performed just as well, if not better, than the image ads that were used to estimate the data.

Meh… I’ll let someone else tackle that (Danny?).

I’m still processing the number of product placement occurances in a lot of the TV shows I watch… I wonder how those numbers would look when compared against the growth of Tivo and DVR.

Check out the article at Nielsen Media Research…

Insomniatic,
—kid disco

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