Online advertising has been predicted by eMarketer to reach $50 Billion in 2015. By contrast the total spend in 2010 was $26 Billion. Comscore had shown that in the last two months of 2010 alone there was over $32 Billion spent online. Therefore it would be no surprise that over the course of an entire year $50 Billion may be spent 4 years from now.
Sales online have been increasing consistently every year as has advertising online. Take a look at eMarketer for more online research.
$6.4 Billion Spent in just 3 Months
I thought I would emphasize that a total of $6.4 billion was spent in online advertising in only 3 months. That was the three month period known as Q3 of 2010, July / Aug / Sept. Take a look at the recent IAB Press Release. Here is a quote from the release:
U.S. Internet advertising revenues hit $6.4 billion in the third quarter of 2010, representing the highest quarterly result ever for the online advertising industry and a 17% increase from the same period in 2009. The third quarter 2010 revenue estimates were announced today by the Interactive Advertising Bureau (IAB) and PwC US.
Take a look at the graph on their press release showing the years 2001 to 2010 with roughly 2 B spent per quarter in beginning of 2000 and now up to 6 B per quarter. Amazing to think how large the online advertising world is.
Online Ad Prices
I read this article in Advertising Age about Social Networks Sink Online-Ad Pricing, it’s a good read. Advertising Age quoted some statistics from May 2009 to May 2010 from Comscore, here is the quote from Advertising Age:
“A recent analysis by ComScore shows social networks, primarily Facebook and MySpace, have over the last year drawn an average CPM of only 56 cents, compared to the $2.43 average for the internet at large.”
What Does This Mean?
You can draw your own conclusions about what this does or does not mean. Essentially markets are supply and demand and the better a market can gauge the value of a product or service, the faster a stable price will be achieved. Of course there are many factors, including supply and demand as well as effectiveness. Just because social sites drive inventory does not mean they drive hefty revenue. And it is amazing how easy it is to effect supply and demand. Imagine if Facebook has three ads per page and removes one, all the sudden inventory drops by 33% and individual ad CTRs and responses may increase (purely hypothetical). The same is true if they decide to increase advertising units on a page.
Why Should You Care?
The reason I wrote this is not to get into the intricacies of pricing and all the variables but to simply point out that you can purchase some cheap online advertising and test it for yourself, it may or may not work for you. Whenever you find a niche that is relatively cheap it is worth testing and then exploiting before it’s gone.
Here are excellent sites for online advertising and obtaining high quality links to your pages. There are $200 in links, one is free and one is for a $1. Another is $25 off of a $100 and another lets you try their service for free! See below.
Do not forget to download my free 40 page step by step Profiting Online eBook
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