US internet advertising expenditure in the third quarter of 2005 grew by 10% over the last quarter, with over a third of respondents to MediaPost’s advisory panel reporting a increase in online adspend of at least 11% quarter on quarter.
The study found that about three-fifths of respondents planned to increase their online adspend in Q4 2005, with over one-third of executives predicting growth would be better than 10%. Overall the survey suggested that spending would rise by 9% in the last quarter of 2005.
Advert prices were revealed to be on the up in most categories, with 40% of respondents claiming that prices for paid search cost-per-click adverts rose up to 10%, with 18% seeing growth of 11% of more, while 11% saying they paid less.
Prices for premium display ads were up as well, but more than half of respondents said prices for run-of-networks adverts were flat.
Two-thirds of the executives revealed that they paid more for page impressions on home pages, vertical channels and rich media, while over 50% of respondents saw higher costs for premium inventory. Cost of run-of-network adverts rose on average by about 3%.
Internet advertising expenditure continues to rise at a healthy rate, with the latest figures from the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PWC) showing the medium to have reached a new record, totalling $5.8 billion an increase of 26% compared to the same period last year (see Record Online Adspend For First Half Of 2005).
The strong performance of the medium is echoed in the UK, with the UK IAB and PwC revealing online adspend to have hit £490.8 million in the first half of 2005, forecasting it to pass £1 billion by the end of the year (see UK Online Adspend To Pass £1 Billion).
The latest forecasts released today by ZenithOptimedia claim that internet revenue will increase at three times the rate of all other media, with the agency revising its projections upwards by 0.3% points to 5% for 2005 (see Zenith Revises Global Adspend Up To 5.2% For 2005).
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