Wednesday, October 26, 2005
Online Ad Spending, and Prices, Move Higher:
" Published: October 24, 2005
(After November 01, 2005, this article will only be available to eStat Database subscribers.)
According to a new study released by Deutsche Bank and MediaPost, third quarter online ad spending rose about 10% over the preceding quarter.
The study was based on a survey of 87 media executives on MediaPost's advisory panel in early October. The majority of respondents reported increased spending on online advertising, and more than one-third said spending had increased by at least 11% over the previous quarter. About one-quarter said spending was flat.
Looking ahead, about three-fifths of respondents felt that they would spend more in the fourth quarter than in the preceding period, and over one-third of executives predicted growth would be better than 10%. Overall, the survey suggested that spending will grow 9% in the quarter on a seasonally adjusted basis.
Ad prices were seen as increasing in most categories. Some 40% of respondents said that prices for paid search cost-per-click ads rose up to 10%, with 18% seeing increases of 11% or more. But 11% said they paid less.
Prices for premium display ads were up as well, but more than half of respondents said prices for run-of-network ads were flat. Two-thirds of the executives said they paid more for impressions on home pages, vertical channels and rich media. Over one-half of respondents saw higher costs for premium inventory, with a weighted, average price increase of 7%. For run-of-network ads, the overall average cost increase was about 3%.
For an in-depth look at the online advertising market, read eMarketer's Ad Spending Trends report."
" Published: October 24, 2005
(After November 01, 2005, this article will only be available to eStat Database subscribers.)
According to a new study released by Deutsche Bank and MediaPost, third quarter online ad spending rose about 10% over the preceding quarter.
The study was based on a survey of 87 media executives on MediaPost's advisory panel in early October. The majority of respondents reported increased spending on online advertising, and more than one-third said spending had increased by at least 11% over the previous quarter. About one-quarter said spending was flat.
Looking ahead, about three-fifths of respondents felt that they would spend more in the fourth quarter than in the preceding period, and over one-third of executives predicted growth would be better than 10%. Overall, the survey suggested that spending will grow 9% in the quarter on a seasonally adjusted basis.
Ad prices were seen as increasing in most categories. Some 40% of respondents said that prices for paid search cost-per-click ads rose up to 10%, with 18% seeing increases of 11% or more. But 11% said they paid less.
Prices for premium display ads were up as well, but more than half of respondents said prices for run-of-network ads were flat. Two-thirds of the executives said they paid more for impressions on home pages, vertical channels and rich media. Over one-half of respondents saw higher costs for premium inventory, with a weighted, average price increase of 7%. For run-of-network ads, the overall average cost increase was about 3%.
For an in-depth look at the online advertising market, read eMarketer's Ad Spending Trends report."
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