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Online Advertising has recently experienced an unbelievalbe market driven turnaround. The following article was published by many different nationwide news sources like CNN, Wall Street Journal, New York Times and many many others. It breaks down third quarter online advertsing sales figures released by the U.S. Department of Commerce.
After 7 Years of Steady Drop, Newspapers Report 14% Rise in Online Ad Sales in Q3 to $1.7B
A number of newspaper publishers report their online divisions are selling more ads and, in some cases, turning profits.
In the third quarter, publishers of newspapers large and small said their online divisions are benefiting from a gathering recovery in the online advertising industry. The results follow Yahoo's strong earnings report earlier this month. (continued...)
Published in 2005
Online advertising to skyrocket, study says
The next five years will witness steady growth in online advertising, with sales more than doubling from their 2004 levels, according to a new study from Jupiter Research.
Sales will reach $18.9 billion by 2010, the company said Monday, up from $9.3 billion at the end of 2004.
Leading the surge will be search engine marketing, which is expected to increase at a compound annual growth rate of 12 percent, the research company said.
Sales of display ads, meanwhile, will increase at a compound annual growth rate of 7 percent, the market researcher said.
Classified advertising is also poised to grow, according to Jupiter. That sector is expected to have a compound annual growth rate of 10 percent, with revenue of $4.1 billion in 2010.
Advertisers will be capitalizing on the growing number of broadband-connected homes by spending on rich-media and streaming-media ads, Jupiter said. Rich-media spending will rise at a 25 percent compound annual growth rate to $3.5 billion, the company said, while streaming-media revenue will rise at a 30 percent compound annual growth rate to $943 million.
Also adding to Web publishers' revenue will be direct sales and network revenue-sharing deals.
Other research has also pointed to strong online-advertising revenue. In the first quarter of 2005, Web ad sales climbed to $2.8 billion, a 26 percent boost from same period in 2004, according to an earlier report from Interactive Advertising Bureau and PricewaterhouseCoopers.
Further, Forrester Research predicted recently that online advertising would jump to $14.7 billion in 2005--which would be an increase of 23 percent over 2004.
Published March 5th, 2008
ATLANTA - Online Advertising Growth Rate - at Least 20% a Year
Researcher The Kelsey Group has projected that online advertising will hit $147 billion by 2012. That’s worldwide advertising and it’s part of their report, “The Kelsey Group’s Annual Forecast (2007-2012): Outlook for Directional and Interactive Advertising.”
As it stands the group measures the market at $45 billion for last year (2007). That’s a compound annual growth rate (CAGR) of 23.4 percent.
“Interactive advertising, which comprises search (including local search), display advertising, classifieds and other interactive ad products, grew its share of global advertising revenues from 6.1 percent in 2006 to 7.4 percent in 2007. By 2012 Kelsey Group analysts expect the interactive share of global ad spending will reach 21 percent.”
Just focusing on the US, the group predicts that for the years 2007 to 2012, in the United States interactive advertising revenues will grow from $22.5 billion to $62.4 billion (22.6 percent CAGR).
Published March 7th, 2008
For Online Advertising the Biggest Growth is Local
ATLANTA - Online advertising will continue to grow for years to come, especially local business advertising. JupiterResearch. According to the US Online Local Advertising Forecast, by JupiterResearch local advertising will grow 13% in 2007 to 2012. Online advertising generally is expected to grow 12 percent during that time. Advertisers will focus on local display and search advertising the most.
Compound annual growth rates (CAGRs) are expected to be 18 percent and 16 percent, respectively, during the next five years.
Online advertising is taking a larger proportion of budgets than in past years, but won’t replace traditional advertising.
“Although traditional media such as newspaper and local broadcast are facing new challenges regarding their business models, local advertising in these media mainstays is not a dying market. The ability to assemble relatively larger general audiences will remain a principal advantage of traditional media.”
- Lead Analyst Barry Parr, Media Analyst for JupiterResearch
Small businesses are still catching on to using SEO techniques to rank higher on Internet searches in local areas. They’ll continue to learn about how they can advertise online. There is a bit of a learning curve for businesses, but once their competition is online, they will start focusing more on Internet marketing.
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