This presidential election will see 145 percent higher spending than seen during last elections. However of the total $4.5 billion spent on advertising overall, only 1.6% or $73 million will be on the internet.
Of this $73 million, 80 percent shall be towards email spending. Since April, 172 million display ad impressions have been advertised by both Democrats and Republicans hopefuls.
Internet ad spend is increasing. The spending on internet ads will surpass radio ads by 2008. It shall overtake Magazine ads by 2010. Share of internet in the Global ad spend shall increase from 8.1 percent to 9.4 percent.
Internet’s share of ad spend is expected to grow to double figures by 2009. By 2010, this share shall increase to 11.5 percent.
October traffic to the campaign sites of the US Presidential candidates (in terms of unique visitors):
HillaryClinton.com : 300,000
RonPaul2008.com : 235,655
JohnEdwards.com : 108,000
Fred08.com : 153,000
Search results pages show ads close to the keyword searched. Similarly, ads that are shown relevant to a user’s behavior on websites is called behavioral targeting. It is done by depositing cookies on the users’ computers to track user action. This has privacy concerns but the market is increasing.
Spending on Behavioral targeting by 2008: $1 Billion
Spending prediction by 2011: $3.8 Billion
The top 5 advertisers on Internet, according to Media Value’s list of 50 top advertisers on Internet:
Privacy Matters Services
Growth is slowing down. Third quarter results show a revenue of $540 million from advertisements. Growth rate is about 13% year-on-year
But why is growth rate slowing down?
Decrease of display and search advertising on AOL site and partner sites
Continued pricing pressure due to competitors and drop in paid click ads on the search page
University of Phoenix (one of AOL’s big clients) is ending commitments in the first quarter of 2008, that shall lead to a similar slow down trend.
Facebook application developers have been given their first monetizing solution on Facebook mobile through AdMob. Developers can download ads from their huge inventory for their applications.
Founded in 2006
Funded by Sequoia and Accel partners
Serves 1.5 billion ads a month
AOL’s new behavior targeted ads shall serve ads to consumers based on what they have searched. This will reach almost 91% of America’s online audience. A twist in the tale: The company plans to entrust greater consumer trust by making the behavioral targeting easy to opt out.
Developers of Facebook applications may choose their own monetizing model. Adbrite is one of the popular choices.
Number of Facebook applications using Adbrite: 100 approx.
Pageviews Adbrite received through Facebook apps: 43.8 million (September)
Average pageviews received by Adbrite through new Facebook channel: 10 million per day
Percentage Ad budget spent online (2007) 17%
Percent Satisfied with advertising options 40%
Percent confident about choosing the right option 5%
Percent Unsure about advertising through blogging and social networking 67%
Percentage Ad budget spent on local search 7%
Percentage that feel print ads are more effective 14%
Percent respondents who take decision of ad-formats themselves 70%
Total respondents: 431 agents and brokers