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May 31, 2005

Internet Advertising

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On Friday, May 27, John Batelle wrote a blog about the increasing amount of money spent on Internet advertising, “Online ads at 12.3 Billion this year“. Batelle’s blog references an article concerning Goldman Sachs’ (among others) predictions on Internet advertising this year, “Goldman Sachs Predicts $12.3 Billion Online Ad Market In ’05“. Some of the interesting points are as follows:

  1. In 2005, Internet advertising will reach $12.3 Billion.
  2. 59% of US households will have broadband connections; in 2004 that number was 50%.
  3. Online advertising could account for 7% of total advertising dollars by 2009.

These predictions are especially interesting from a pay-per-click perspective. If advertising budgets are focusing more and more on the Internet, pay-per-click has the potential to be utilized more often. We always encourage our clients to concentrate not only on organic listings but also on pay-per-click listings, and with increasing Internet advertising budgets, focusing on pay-per-click is good advice!

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