Consumer Online Adspend Tops $1.8 Billion In 2004

The OPA’s “2004 Paid Online Content US Market Spending Report”, conducted in partnership with comScore Networks, found that online advertising expenditure for the entertainment and lifestyles sector grew by an impressive 90% to $413.5 million in 2004, up from $217.6 million the previous year.

Online personals/dating remained the leading paid content search category in 2004, with spending at an all time high of $469.5 million, up 4% on 2003. Business/investment content, however, dropped by 6% over the same period. Elsewhere, sports and games were revealed to show strong annual growth of 38% and 22%, respectively.

Commenting on the findings, Michael Zimbalist, president of the Online Publishers Association said: “The fact that entertainment/lifestyles, sports and games were by far the year’s fastest growing paid content categories is further evidence that the web is on its way to becoming a true entertainment medium for US consumers.”

According to the report, 19 million US consumers paid for online content in Q4 2004, up 2.6 million on the same period in 2003. Paid search is identified as outpacing growth in the number of US internet users, with paid content consumer penetration in Q4 2004 reaching its highest point yet, at 11.6% compared to average consumer spending which remained flat.

Zimbalist added: “The market for paid online content remains strong, and with less that 12% of the total US internet population purchasing content online in the fourth quarter, there is still significant room for growth.”

Paid search in UK has also risen dramatically. Earlier in the year, Starcom UK revealed that it is the UK’s fastest growing media channel, with a year on year increase of 109%, to £114.3 million for the first half of 2004. The medium now accounts for 32% of all online advertisers spend (see UK Online Advertising Enjoys Dramatic Growth).