September 6, 2005 | Comments
Online ad spend trails estimates for the year, but powerhouse sectors like telecom, media, and Internet phone providers show substantial growth.
Online ad spend for the first half of 2005 grew 9.4 percent from the first half of last year, according to TNS Marketing Intelligence. First quarter figures pegged year-over-year growth for online at 8.2 percent.
An early TNS forecast projected an 11.2 percent increase for the year, meaning the industry must make up 1.8 percent the second half to hit those numbers.
"We're not seeing anything that leads us to believe we still can't make that number," said Steven Fredericks, president and CEO of TNS Media Intelligence.
Though positive on continued growth for the channel through the end of the year, Fredericks warns that the third quarter will be difficult. Last year the Summer Olympics and national elections boosted advertising figures across all channels, including online.
The Internet saw individual sectors with significant growth. Telecom and media both increased by 43 percent in the first half of the year. Internet phone providers increased their spending by 53 percent during that time.
TNS does not currently include paid search, a sector that Fredericks calls the fastest-growing segment on the Internet.
"If you fold in search advertising, you will see more robust growth," said Fredericks.
Future forecasts and reports from TNS are expected to include search advertising. Fredericks said it will happen as early as next year. Currently the company is working on developing a methodology, and getting buy-in from publishers.
Across all channels, advertising has grown has grown 4.5 percent over the same period last year. That's higher than the 4.1 percent forecast issued earlier this year by TNS.
|Top 50 Internet Advertisers by Media Value,|
|Position||Advertiser||Media Value ($ 000)||Sector|
|2||Purina VAR Pet Food||18,995||CPG|
|10||SBC Yahoo DSL||5,746||Tech|
|11||Scottrade Stock Brokerage||5,671||Fin|
|13||University of Phoenix Online||4,275||Edu|
|16||University of Phoenix||4,035||Edu|
|17||Dell VAR Computers Products Direct||3,849||Tech|
|21||Dell Plasma TV Electronics Products Direct||3,671||Tech|
|23||Hydroderm Skin Care||3,442||H/F|
|30||Dell Dimension Computer Products Direct||2,923||Tech|
|32||Wells Fargo Bank||2,884||Fin|
|36||Candlewood Suites Hotels||2,675||T/H|
|39||Privacy Matters Services||2,469||Mics|
|41||Business Week Magazine||2,458||Ent|
|42||E3 Access 2005 Video||2,442||Ent|
|44||Tickle by Emode||2,185||Date|
|46||American Intercontinential University (AIU)||2,072||Edu|
|Sectors: Auto - Automotive; Class - Classifieds; CPG - Consumer Package Goods; Date - Online Dating; Edu - Education; Fin - Financial Services; H/F - Health & Fitness; M/E - Media & Entertainment; Misc - Miscellaneous; Ret - Retail; Tech - Technology; T/H - Travel/Hospitality|
|Top 50 Internet Advertisers In June, 2005|
Methodology: Chart represents the value of display advertising in both standard and non-standard ad formats. Media expenditure estimates do not always take into account special considerations including publisher discounts, barter agreements, co-sponsorship, affiliate relationships, etc.
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