Blog Post

Display Ad Spend Seems Strong As Other Categories Appear Sluggish: Report

While the threat of an internet ad spending slowdown has been hanging over the industry lately (by that, we mean lower double-digit growth), online media revenue appears resilient on both a quarterly and estimated annual basis, according to TNS Media Intelligence. For Q1, online display ad spend led other ad categories with a 16.7 percent increase to $2.7 billion. In comparison, network TV ad spend dropped 7.2 percent to $6.05 billion, while spot TV ad revenue slid 4.1 percent to $3.74 billion. Newspaper and radio continued to significantly lag the overall market as well. In terms of its share of the ad market, display ads (TNS did not measure online search advertising) took a 7.7 percent slice in Q1 versus 6.6 percent in Q106. Release

Looking at the entire year, TNS originally had expected overall ad spend to grow 2.6 percent in 2007, but has now revised its year-end forecast downward to an increase of 1.7 percent to $152.3 billion. In contrast, TNS slightly upgraded its outlook for online display ad revenue. In January, the company projected the share of the ad market belonging to online display ads would be 13 percent change over 2006. At the time, it estimated display ads would account for 6.5 percent of all ad spending, while forecasting it might move up to 7.2 percent in 2007.

One Response to “Display Ad Spend Seems Strong As Other Categories Appear Sluggish: Report”

  1. you have to wonder whether there's much of a future for print newspapers, i don't see how they'll compete with the internet; it's more dynamic, the ads are relevant and easy to update, more accesible, etc etc.