US online advertising expenditure in the first quarter of 2006 rose by 9.3% compared to the last quarter of 2005, with pricing also enjoying a strong performance.
According to a new study from Deutsche Bank in conjunction with MediaPost, the cost of premium inventory increased by 3.8%, with run of network inventory up by 2.7% and paid search seeing growth of 3.1%, year on year.
Collectively, the survey respondents spent $148.5 million on internet advertising during the first three months of 2006.
Around 72% of media executives reported clients spending more on internet advertising in Q1 2006 than during Q4 2005, with 40% revealing increases of over 10%, 8% saying they was no change, while 6% said spending declined.
The majority of respondents, 55% said that cost-per-thousand impressions for premium inventory was more last quarter than in the last three months of 2005, while 15% of respondents reported increases of greater than 10%. Half of the marketers also said that pricing for run-of-network inventory had increases, with 9% reporting rises of more than 10%.
Online adspend is increasing its presence in the UK as well, with total expenditure up by 65.6% in 2005, reaching £1.4 billion and enjoying a market share of 7.8% (see UK Online Adspend Up By 65.6% In 2005).
According to recent figures released by the Internet Advertising Bureau (IAB), online media is driving the growth of the entire advertising market. Adspend across all other media combined fell by almost £200 million year on year in 2005.
Online is expected to continued its strong growth, with OPera forecasting global display advertising to enjoy a surge in popularity over the next five years, with expenditure forecast to hit £11.8 billion in 2010, up from £9.5 billion this year (see UK Adspend To Hit £15 Billion By 2010).
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