Media Healthcheck: May 2010
In May there was a plethora of research about online adspend and online video, with eMarketer forecasting 11% growth in US online advertising spending.
US online adspend will reach $25.1 billion this year, up from $22.7 billion, the research firm said. Its previous prediction, in December 2009, was for 5.5% growth.
The revision was due to “a stronger than expected search and banner market, along with the rush among advertisers for greater accountability in the still-soft economy”.
And first quarter figures from the Interactive Advertising Bureau and PricewaterhouseCoopers backed-up the buoyant outlook, showing that US online advertising revenues hit $5.9 billion, representing a 7.5% increase over the same period in 2009.
This marks the highest ever first-quarter revenue level for the industry.
May also saw the publication of US branded video ad network BrightRoll’s online video advertising report, which revealed that US advertisers are becoming increasingly reliant on the medium to reach targeted audiences.
Around 55% of respondents – who included executives and media buyers at leading advertising agencies across the US – stated that they view online video advertising as either “more effective” or “much more effective” than other forms of advertising.
According to comScore, meanwhile, US internet users received a record 1.1 trillion display ads during the first quarter, a 15% year on year increase.
Total US display ad spending in Q1 reached an estimated $2.7 billion, with the average cost per thousand impressions (CPM) equal to $2.48.