Online Advertising Up 25% in Q3 - but is it 80% Google?
PricewaterhouseCoopers and the Interactive Advertising Bureau released their 3rd quarter numbers estimating total ad buys online today. Big growth continues, but take it with a giant grain of salt. Last quarter the number exceeded $5.2 billion according to the study, up 25% over Q3 last year.
According to the IAB, the glory days are here. "Marketers large and small have come to accept digital media as the fulcrum of any marketing strategy," says Randall Rothenberg, President and CEO of the IAB. That seems like a real exaggeration to me. In fact, Google reported Q3 revenues of $4.3 billion just by itself, that up 57% from Q3 2006. The vast majority of that is in advertising sales, so industry growth is based on Google growth, apparently. Either someone's numbers are off or we're all insane trying to make a living in this industry. All of us but Google, that is.
As time on the television continues to drop and time online rises, I think we've only seeing the beginning of the online advertising economy. It's hard to get too excited about the health of the industry, however, when one company's own growth makes up so much of the story.
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I heard that Ad:Tech last week had a lot of upbeat people. So that is what I hear, as I didn't go.
Rex
Posted by: Rex Dixon | November 12, 2007 5:44 PM
Almost makes you want to root for the underdog - Microsoft adCenter.
Posted by: Don Jones | November 12, 2007 5:51 PM
Q3? What is it?
Posted by: Dobry biznes | November 13, 2007 1:36 AM
It's unlikely that this is true. Does IAB count the US? If so, then you have to take into consideration that Google doesn't make all their revenue there.
If not, then it simply can't be true. There are so many sites out there that make a lot of money with ads - if Google made all the money, where would they be? Beside Google, there are also Yahoo!, Microsoft, AOL, About and many other corporations, I can't imagine that they _together_ are so much less than 20% that there's still space for all the small sites that make a living on ads that they sell themselves.
;)
Posted by: Sebastian | November 13, 2007 1:37 AM
In my opinion the important thing is that the cake is getting bigger and bigger.
Posted by: Alexis Brion | November 13, 2007 6:12 AM
yes i agree.
Posted by: SmartFolio | November 22, 2007 9:41 AM