Online advertising spending has been growing rapidly in recent years. According to the latest official tally release, 15% of the Internet advertising revenues grew in the second half quarter from a year ago that is 2011.
The Interactive Advertising Bureau said that online revenues hit a record of $8.4 billion from all sources. However revenues are grown in 2012, but it is expected to slow down in the following years.
15% growth rate is not bad in these uncertain economic times, but it is a considerable drop compared to a year ago, when revenues rose 23%.
IAB didn’t provide a particular reason for the growth down, but ad folks across the spectrum of advertisers, agencies, and publishers have noted caution on the part of marketers as the economy has appeared to stall in recent months.
In the first quarter, Google’s search ads revenues rise about 24% to it and will continue to be strong, less direct or measurable ads such as display ads may be seeing more impact from the economy.
However, there is a need for web publishers to come up with new ideas or ways to increase the growth as well as to attract the advertisers that still spend 95% of their budgets in traditional media. At the same time, the trend to invest more in web is quite obvious. It is up to the web publishers to attract the advertisers with great content and user experience. Web publishers who think from the advertisers points of view as well as accommodating the web site visitors will do well.
Advertisers don’t see a better way to reach a lot of audience with image ads online. However, revenues are expected to increase in the following years, if advertisers invest in interactive advertising because it is the best method to reach many international audiences. There will be sufficient space for innovation on the web publishing with various types of ads and sizes.
Sponsor: