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4 Billion

That chart no longer looks like a bubble, does it? Didn't think so.

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Internet advertising revenues close to $4 billion

The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) today announced that Internet advertising revenues reached a new record of $3.9 billion for the first quarter of 2006. The 2006 first quarter revenues represent a 38 percent increase over Q1 2005 at $2.8 billion and a 6 percent increase over Q4 2005 total at $3.6 billion.

Online ad revenue set to overtake UK national newspapers by 2007

Internet ad revenue is set to overtake UK national newspaper ad revenue by the end of 2007, according to a report by WPP's pooled buying operation Group M.

The FT said the projection would make web ad revenue the third biggest revenue generator globally behind regional newspapers, currently in second place, with television still way out in front.

The Group M report:
  • Estimates that internet ads would account for 13.3% of the 12bn a year media ad market by December 2007, with national newspapers marginally behind on 13.2%.
  • Forecasts a 39% rise in internet ads, compared with a 9% decline for national newspaper ad revenue.
  • Predicts that by the end of 2007, national newspapers' share of the market will drop to almost two-thirds of the levels in 2000.
  • Claims that analysts have continually underestimated the growth of internet ads, partly due to the perception that the popularity could not be maintained.
  • Adds that search ads accounted for more than half of online ads in 2005, with further growth predicted this year.
  • Predicts TV advertising will drop by 2% this year, and said TV was experiencing "its worst year since 2001" -- largely attributable to the global media downturn post September 11. (However, TV still has a 28.8% share of worldwide advertising revenue.)
Brand Republic suggests that the TV ad downturn would be felt acutely by ITV1, the UK's biggest ad-funded channel, with an 11% decline in ad revenue predicted at the channel for the end of the year.

The GroupM report concludes that newspaper ads were experiencing a decline in popularity for failing to engage with younger audiences. (The IAB already predicted that online ad revenues will surpass national newspapers by as early as November this year.)

That should give Paul Hayes some more dross to trawl through.

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