Not a surprise. Internet advertising is up again. According to the Interactive Advertising Bureau, online ad revenues exceeded $21 billion in 2007, up 25% from 2006. (The same group, though, reports that Internet revenue growth has slowed a bit, after posting gains of 35% between 2005 and 2006).
What amazes me is that Internet advertising is only 10% of the U.S. ad spend - still! With Americans addicted to web surfing, increasing access to the Internet, broadband availability up to around 70% of U.S. homes and better-than-ever wireless connectivity to the web, it would seem that advertisers would want to put a greater chunk of their ad spend online.
After all, the idea of advertising is to be where your customers and prospects are - online and off-line. And, the Internet can not only reach potential customers, but it can afford some efficiencies that traditional media does not.
But for some companies, online advertising is still untested or unfamiliar ground. So, it might be a good while before online advertising achieves 50% of the U.S. ad spend.
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