Online advertising growth outpaces offline
Tuesday, February 28th, 2006
The 30-second TV spot isn’t dead. Neither is radio or print advertising. But according to Outsell Inc., an information industry research firm, the surge of dollars into the online advertising sector continues to grow at a faster pace.
Outsell projects spending on online advertising to surge to 19 percent of advertising spending in 2006. By contrast, spending on print ads will grow an estimated 2 percent and spending on radio and television ads an estimated 2.4 percent.
That projection seems to hold up fairly well when considering that according to an estimate from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) released today, Internet advertising revenues surpassed $3 billion for the second consecutive quarter in Q4 of 2005, a 35 percent increase over the same period in 2004.
Outsell estimates that the Internet is now used by 80 percent of advertisers, a broader adoption rate than is generally acknowledged, and projected a 90 percent adoption rate by 2008.