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Online Advertising's Tipping Point Approaches
Recent media trends indicate that the "tipping point" for offline ad dollars moving online could occur in the second half of 2006, says Piper Jaffray analyst Safa Rashtchy in a new report. Yahoo and Google appear to be best poised to reap the benefits.
Several trends, including online ad spending increases, the speed of technology growth, and the way online benefits offline campaigns, are converging, accelerating online's spending growth from a 5 percent share this year to a 10 percent share much faster than originally thought.
In the second half of 2006, it's expected the full impact of dramatic budget shifts online from some major marketers, sparking rapid acceleration that will "conservatively" exceed $55 billion by 2010, Rashtchy says. That is more than twice the existing net adverting revenue generated from advertising for the radio industry. Rashtchy also said nearly 10 percent of search spending is done for its branding impact, with agencies increasingly being able to tap into the client's branding budget for search spending. This directly targets current TV ad spending.
full ClickZ story
posted by Unknown @ Wednesday, January 04, 2006,
