Ghost of Midnight

… about neighbors, community and Front Porch Forum

Online Ad Spending

Posted on Thursday, February 28, 2008 by No comments yet

Greg Sterling reports this week

The IAB reported its estimate that 2007 saw 25% growth in online ad revenues for a total of $21.1 billion vs. $16.9 billion in 2006. You can expect the distributions to be similar to 2006:

  • Search — 41%
  • Display — 32%
  • Classifieds (which includes directories) — 18%
  • Lead Generation — 8%

And TechCrunch offers more data.

In another post, Sterling pulls together some other advertising data and estimates, including…

Most interesting to me in the MerchatCircle survey is the finding that most SMBs aren’t willing to spend more than $100 per month on online, whether or not they believe print YP to be an effective ad medium. That’s $1200 per year. Compare that with a rougly $3500 average annual print YP spend. ReachLocal, by comparison, says it’s getting a minimum of $1000 per month from advertisers, but it’s going after the bigger print YP spenders.

Anecdotally, Front Porch Forum is finding each small business it deals with to have a different story and approach to buying online ad space.  Some won’t take a freebie while others will spend in excess of the $1000/month mentioned above without hesitation.

Posted in: Front Porch Forum, Local Online, Small Business Advertising

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