Top 100 Advertisers Shifted $1 Billion to the Web in 2007

The top 100 advertisers in the U.S., who represent 41 percent of total advertising spending, shifted about $1 billion last year from TV and newspapers to the Web. An analysis from Ad Age shows that overall media spending in “measured” categories (TV, print, radio, Web) by the top 100 advertisers was flat in 2007, with 0.3 percent growth to $61.3 billion. But spending on Web display ads rose 33 percent to $4.2 billion. The article notes:

Put another way, these top-tier marketers increased measured internet spending by $1 billion; slashed newspaper spending by $674 million; and cut TV budgets by $406 million.

This is yet one more piece of evidence that dollars are flowing from traditional media to the Web. The analysis is based on data from TNS Media Intelligence for 2007. TNS only measures display advertising, and not search.

The big question is whether the recession that has already hit some categories of advertising will hit the Web this year. Already, the growth of spending in display advertising slowed overall in the first quarter of 2008. And the Interactive Advertising Bureau showed a slight decline for all Web advertising (including search) to $5.8 billion in the first quarter, from $5.9 billion in the fourth quarter of last year.

Here is a table from Ad Age showing the breakdown in spending for the top 100 advertisers (the $44 billion in “unmeasured spending” includes things like direct marketing, in-store advertising, and other promotions, and is not included in the figures cited above):

click to enlarge

Comments

[tyneham:]

Internet click fraud is underestimated by web-traffic auditors. The fraud is deceptively downplayed by major financial beneficiaries and their small time accomplices or affiliates. Big or not, no online advertiser is immune from growing the fraud. There is mounting unease and concerns over the fraud on all websites that have affiliate programs. These serious, legal issues are not being addressed by the law makers in most countries.

US Rep. Bobby Rush, D-Ill., Rep. Joe Barton, R-Texas, the Commerce, the Justice Department, Trade and Consumer Protection panel, the House Small Business Committee panel, the Senate Judiciary Committee’s antitrust panel, the House Energy and Commerce Committee’s Commerce, Trade and Consumer Protection panel and the Senate Commerce Committee and all law makers, for example, must also scrutinise the pending/proposed Yahoo-Google deal, and its impact on defrauded advertisers, big or small.

By some logical estimates, click fraud could be over sixty percent. However, even one percent of $90 billion of global 2008-2009 Internet ad spend is too high, mainly because advertisers, big or small, are still deceived, overcharged by millions and thus defrauded every day.

Read how, for example, "Yahoo protects online fraudsters, locks out legal ethical experts," web links here tyneham.wordpress.com , del.icio.us/tyneham?se... where some cases are cited, www.networkworld.com/c... , tyneham.blogspot.com , tyneham.newsvine.com

2008 Jun 26 10:49 AM