Shift to Online Advertising Should Benefit Internet Publishers and Ad Providers

The New York Times reports that starting in 2008 Intel will require companies participating in its "Intel Inside" co-op marketing program to spend at least 35% of Intel's advertising contribution on online marketing. Intel also plans to spend 50% of its own $300 million annual ad budget on online ads starting in 2009, versus about 15% in 2005. The "Intel Inside" program provides single-digit percentages of Intel's chip sales to a company as a subsidy for ads by that company that include the "Intel Inside" logo. The Intel cash can be used to pay for up to half the cost of the customer's ads. Intel customer Sony Electronics said that online media would account for over a third of its budget this year, and the percentage would rise in 2008. Sony is already buying click-to-play video ads from Google. An increase on online technology spending would benefit online tech publisher CNET, broad publishers Yahoo and Time Warner, shopping platform eBay, and ad provider Google.

Sources: New York Times
Commentary: Riding the Internet Advertising Wave • Is Internet Advertising Really Worth Billions? • Online Ad Revenues: Display vs. Search Going Forward
Stocks to watch: CNET, YHOO, TWX, GOOG, EBAY

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