Thought Snack for Today

Online Ad Spend Still in Infancy

According to a recent report by Marketing Sherpa, online ad spending (while growing at an impressive clip) is still dwarfed by more traditional offline methods.  For instance, paid search is running at about an $8 billion annual clip and other online advertising is about $4.5 billion annually.

The largest of all offline spends is direct mail with a spend of about $59 billion per year followed by newspapers at $30 billion and network TV at $25 billion.

Even the annual spend for Yellow Pages offline is nearly double paid search.

But there's the growth factor online.  "Online spending will surge to $18.9 billion by 2010--up about 59 percent from an estimated $11.9 billion this year, according to a report released Monday by Jupiter Research. But despite the uptick in online revenues, Web advertising will account for just 7 percent of all ad spending in 2010--compared to 5.6 percent this year, according to the report, "U.S. Online Advertising Forecast, 2005-2010.""

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